Are your VAT invoices compliant?
From March 2014, SARS requires that the address of the recipient and supplier be reflected on a VAT invoice where the supply exceeds R5 000. A business may elect to reflect either the physical or postal address of the enterprise or both.
Have you correctly accounted for VAT when reimbursing employees?
Most costs for which employers reimburse their staff, bear VAT, eg. cellphone, accommodation and travel costs. The VAT Act allows vendors to claim an input tax deduction where the supply was made to a person, acting on behalf of such a vendor as an agent, where the tax invoice is issued to such agent.
Recent SARS rulings indicate that certain reimbursed costs are not incurred by the employee as an agent and the VAT input is therefore not allowed. Vendors therefore need to ensure that they are complying with the VAT Act or could risk being assessed for VAT, penalties and interest.
Should you have any VAT queries – kindly contact us on 021 713 8700.