Bookkeeping/Accounting Service - Sage Pastel Online
Monthly SARS returns
Reasons To Perform Vat Review
As per National Treasury 2015 Tax Stats:
Vat income has increased by R20.8b from 2012 to 2015.
This is an increase of 20%.
Vat vendors have declined by 20880.
Estimated over recovery of R86m per year.
Finance departments often assume that all systems are in place for full recovery, but we have not come across 1 company, where the VAT was claimed correctly.
In many cases errors are difficult to identify and therefore companies have overpaid VAT.
Financial restrictions prevent companies from performing a proper VAT review. (External Auditors fees are extremely high)
The VAT law makes regular amendments, which is not always taken into account.
The VAT act allows for VAT corrections within 5 years of the transaction, thereafter the “money” becomes state funds.