Here’s how to recover Vat from your clients when you finally get your Vat number

Simangele Mzizi, Fsp Business, 13 Oct. 2014

Tags: vat, vat number, how to levy vat, pay vat, paying vat to sars

As a Vat vendor, you must collect Vat and pay it over to SARS under your Vat number.

Once you receive your Vat number from SARS, you can go back and levy the Vat on your clients, unless you have an agreement that specifically disallows this.

How do you do this?

Here’s how to recover Vat from your clients once you receive your Vat number.

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Are you willing to wait more than 6 months for Vat registration?

SARS has confirmed that the minute you've applied for Vat registration, you must start charging Vat. Otherwise, and the amount you've charged your customers will be regarded as being inclusive of Vat. And the Vat will come out of your pocket...

You can rely on our experts and take advantage of their experience with SARS! Learn how to stand up for your rights! The A-Z of Vat Registrations ereport will give you that.



Once you receive your Vat number, do this to recover Vat from your clients

The best way to explain how to recover Vat from your clients is to provide a practical example:
Example: Asif and Jacques start an accounting practice. They start trading on 1 May 2014. They haven’t received their Vat number at the end of May when they issue invoices, so they don’t charge their clients Vat.
They receive their Vat number on 1 June 2014. But SARS holds them liable for Vat from 1 May 2014.
In terms of Vat law, a business must charge Vat when it becomes liable to register.
So, Asif and Jacques will be well within their rights to go back to the clients they invoiced in May and charge the 14% Vat as an additional charge. To do this, they issue credit notes for the May invoices and re-issue tax invoices that include Vat. Their clients can claim the Vat back as input tax.
It’s that simple to recover Vat from your clients when you finally get your Vat number. Now that you have the know-how, do it right so you can comply with Vat law.
PS: We strongly recommend you check out the Practical Vat Loose Leaf Service. It gives you tips, tools and advice to comply with the Vat Act

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