- Threats received from SARS officials: Seriously? Sadly, yes. A few of the attendees reported that SARS auditors threatened them! Here are 3 hair raising reports:
– the diesel rebate: farmers are allowed to claim 80% of their diesel purchases as a rebate. The SARS auditors automatically “add back” another 20%! When asked on what grounds, the auditors respond that should the vendor be unhappy, that they will then reverse all the diesel claims, going back as far as 5 years.
– SARS phone calls wanting accountants to provide ID numbers, and other personal details of their clients. At the refusal of the accountants (because they can’t give out this information – especially not telephonically), the SARS caller says they will withdraw the accountants’ tax practitioner registrations!
– A “team” made up of SARS officials, Home Affairs Officials and the Police, raid a Gauteng Mall, and antagonise the business owners to show VAT registration details, PAYE details and employee personal details.
2. Input tax claims – SARS now asking for proof of payment of invoices. Please remember, that if you are registered on the invoice basis for VAT, that the VAT Act requires you to hold a valid invoice to claim your VAT. S9(1) of the VAT Act provides that the time of supply (this is the time you must declare output tax, or claim input tax, is the earliest of an invoice or any payment made (not deposits). So, the Act does NOT require you to have paid the invoice in order to claim the input!
3. The “pop-up letter” – that notice of verification that appears on your e-filing, the second after you have filed your VAT return – gives you 21 days to respond to SARS. Please remember, its 21 normal days – not 21 working days.
4. VAT registrations can be done on-line on e-filing with the RAV01 form. However it appears that SARS in Mpumulanga’s Lowveld, does not accept this. We really are not sure, why.
5. Payments received for construction – mostly these are received as per the certificate of progress authorised by the architect, quantity surveyor or other similar party. The VAT needs to be accounted for as per each progress payment.
6. Remember, your business cannot suffer your input tax not being allowed.
7. Requests for training in smaller districts/areas: Polokwane, we are coming to you on 22 and 23 November.