Facing a VAT audit? 10 financial records you need at hand
These are the ten items that SARS will investigate if your business faces a VAT audit:
VAT return totals: Your VAT return total will be checked against your general ledger and summary.
VAT control account: Your VAT control account will be reviewed to test your accounting system for errors.
VAT interest and penalties: SARS will check if VAT interest and penalties were added back into your records.
Tax invoices: Your tax invoices will be selected and tested, so make sure they clearly state 'tax invoice' and not VAT invoice.
Debtors: Your debtors will be checked.
Trade: SARS will investigate how you've classified your trade.
Previous audits: Record of any previous audits will be examined.
Taxable supplies: Your type of taxable supplies will be checked.
VAT refunds: SARS will also go through your history of VAT refunds for any mistakes that have been carried over.
Assets and liabilities: SARS will look at the value of your assets and liabilities when you registered for VAT, as well as your capital assets acquired to ensure you're making the correct capital gains tax claims.
The content in this article was provided by Marius van der Westhuizen, founder of Van Der Westhuizen Konsult.
About Van Der Westhuizen Konsult:
Van Der Westhuizen Konsult is a professional services company offering accounting, taxation and financial services. Van Der Westhuizen Konsult is able to offer a wide range of ancillary professional services.
We commit our resources, experiences and entrepreneurial savvy to provide our clients with exceptional service and solutions. We are innovative professionals, operating in an ever-changing business environment.
For more information:
Tel: 072 659 8214
Email: marius@vdwesthuizen.com