VAT 404 – Guide for Vendors 10 Important Principles
10 IMPORTANT PRINCIPLES
1. All prices charged, advertised or quoted by a vendor must include VAT at theapplicable rate.
(Presently 14% for standard rated supplies).
2. Vendors collect VAT on behalf of the State
– please make sure that you pay it over ontime, otherwise penalties and interest will be charged.
VAT charged on supplies made (output tax)
VAT paid to your suppliers (input tax) = theamount of
You need a
valid tax invoice
VAT number indicated
on it as proof of any input taxclaims which you want to make. You must also keep
of all your tax invoices andother records of transactions for
five (5) years
5. Goods exported
to clients in an export country are charged with VAT at 0%. However, if delivery takes place in RSA, you must charge VAT at 14% to your client. If your client is avendor, the VAT charged may be claimed as input tax. If your client is not a vendor, and thegoods are subsequently removed from the country, a refund claim may be lodged at the pointof exit.
6. You may not register for VAT
or claim any input tax
on goods or services acquired tomake
exempt supplies or for private use or other non-taxable purposes
. Also, as ageneral rule,
input tax may not be claimed
where the expense incurred is for the acquisitionof a
, even if utilised for making taxable supplies.
You are required to
the South African Revenue Service (SARS) within 21 days ofany changes in your registered particulars,
including any change in your authorisedrepresentative, business address, banking details, trading name, or if you cease trading.
If you have
as a result of a
report it to your SARS branch office
as soon as possible, rather than leaving it for the SARS auditors to detect.
pay your VAT by using various electronic methods
, including e-filing, internetbanking, debit order and electronic funds transfer (EFT). You may also pay at any of the four major banks instead of carrying cash to your local SARS cash office.
10. Report fraudulent activities
to SARS by calling the
toll-free number 0800 00 2870
. Youmay report an incident anonymously if you wish.