Have the following information ready when you claim your Vat refund in case SARS asks for it

Simangele Mzizi, Fsp Business, 03 Feb. 2015

Tags: vat refund, refund, sars, claiming a vat refund

When your input tax is more than your output tax, you can claim your Vat refund from SARS.

To process your claim, SARS may ask for certain information.

That’s why you shouldn’t sit back after you make your claim. You must gather this information and have it ready in case SARS asks for it. If you don’t, there may be a delay with your Vat refund. And you’ll wait weeks for your money.

Here’s what you must prepare for SARS…

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Use this ten-step action plan to ensure you get your Vat refund from SARS on time, every time
Don’t let SARS make you wait for your Vat refund.
Claim your ten-step action plan now! And get your Vat refund within the allocated 21 days.

Prepare this information after you make your Vat refund claim

1. After you claim a Vat refund, have your business’s ten biggest tax invoices ready and make sure they’re valid.
When it comes to Vat refunds, the golden rule is, there must be documentary proof.
If there isn’t or if your records are incomplete or invalid, SARS could deny your claim and hit you with a penalty.
Remember, your tax invoice is only valid if it contains eight things:
  1. The words “Tax Invoice”
  1. The name, address and Vat number of the supplier
  1. The name, address and Vat number of the buyer. (If you sell to someone that isn’t a vendor, leave it open.)
  1. A serial number of the invoice;
  1. The date the product/service was issued;
  1. A description and the mass or quantity of the goods bought;
  1. The amount paid for the goods bought; and
  1. The price of the goods, the amount of Vat and the total, or one amount including the Vat, (i.e. either 0% if zero-rated or 14% if standard-rated must appear on the tax invoice).
2. Have a summary of your output and input tax calculation on hand.
As we said earlier, when your input tax exceeds your output tax, you can claim the difference as a refund.
When SARS processes your claim, it could ask to see how you reached the conclusion that it owes you a Vat refund. So have your Vat calculation summary ready to prove a Vat refund is really due.
While this doesn’t fall under the information you must prepare, it’s also a good idea to check SARS has your correct banking details so it can pay your refund amicably.
“If SARS doesn’t have correct banking details, your Vat refund will bounce and sit with it until you provide proof of your correct banking details. This process can take up to a year,” warns the Practical Vat Loose Leaf Service.
What’s more, the Loose Leaf Service adds, “SARS won’t pay interest on late refunds if the refund was late because you didn’t submit your banking details.”
There you have it: Having this information ready after you claim a Vat refund will help make sure you don’t experience Vat refund delays.
PS: To get your Vat refund from SARS within 21 days every time, check out The Vat Refund Accelerator.

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