Facing a VAT audit? Make sure you have these ten financial records at hand...
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Ten items SARS will investigate if your business faces a VAT audit
- Your VAT return totals will be checked against your general ledger and summary
- Your VAT control account will be reviewed to test your accounting system for errors
- SARS (South Africa Revenue Service) will check if VAT interest and penalties were added back into your records
- Your tax invoices will be selected and tested – make sure they clearly state 'tax invoice' and not VAT invoice
- Your debtors will be checked
- SARS will investigate how you've classified your trade
- Record of any previous audits will be examined
- Your type of taxable supplies will be checked
- SARS will also go through your history of VAT refunds for any mistakes that have been carried over
- Lastly, 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.
Author and copyright: Marius van der Westhuizen
Contact Van Der Westhuizen Konsult - Professional Accountants (SA) today to assist and finalise your VAT audit with SARS.
Cell: +27 (0) 72 659 8214