What do I need to be able to submit a VAT return in South Africa?

To submit a VAT return in South Africa, you need to gather and organize various pieces of information and documents to ensure accurate reporting and compliance. Here’s a detailed checklist of what you need:

1. VAT Registration Number

• Required: Ensure you have your VAT registration number, which must be included on your VAT return.

2. Financial Records

• Sales Records: Detailed records of all taxable sales, including the amounts collected and VAT charged. This includes tax invoices issued to customers.
• Purchase Records: Documentation of all business purchases, including the VAT paid on these purchases. This includes tax invoices from suppliers.
• Bank Statements: Statements from your business bank accounts to reconcile your VAT records.

3. Tax Invoices

• Issued Invoices: Copies of tax invoices issued to customers for sales, which include VAT amounts.
• Received Invoices: Copies of tax invoices received from suppliers for purchases, including VAT amounts that can be claimed as input VAT.

4. VAT Calculation

• Output VAT: Calculate the VAT collected from sales (output VAT).
• Input VAT: Calculate the VAT paid on purchases (input VAT) that you are entitled to claim.
• VAT Payable or Refundable: Determine the difference between output VAT and input VAT to calculate the amount payable or refundable.

5. VAT Returns and Forms

• SARS eFiling: Log in to the SARS eFiling system, where you will complete and submit your VAT return electronically.
• VAT201 Form: This is the standard form used for VAT returns. It can be completed online via eFiling or manually if needed.

6. Supporting Documentation

• Reconciliation: Perform a reconciliation of your VAT records to ensure all amounts are correctly reported and that your VAT calculations match your financial records.
• Documentation: Prepare supporting documents in case SARS requests them for verification or an audit. This includes tax invoices, receipts, and any correspondence related to VAT.

7. Filing Deadlines

• Due Dates: Be aware of the due dates for your VAT return submission and payment. VAT returns are typically filed on a monthly or bi-monthly basis, depending on your VAT registration status.
• Monthly VAT Returns: Due on the 25th of the month following the end of the VAT period.
• Bi-Monthly VAT Returns: Due on the 25th of the month following the end of the two-month VAT period.

8. Payment of VAT

• VAT Payment: Pay any VAT amount due by the deadline specified. Ensure the payment is made to the correct SARS account to avoid penalties and interest.

9. Record-Keeping

• Retention: Maintain records of all VAT-related documents and transactions for at least five years, as SARS may conduct audits or request verification of your submissions.

10. System Access

• eFiling Access: Ensure you have access to the SARS eFiling system, which requires a registered username and password. If you are not registered for eFiling, you may need to set up an account.

Additional Tips:

• Consult a Tax Professional: If you’re unsure about any aspect of your VAT return, consider consulting with a tax advisor or accountant to ensure accuracy and compliance.
• Regular Updates: Stay updated with any changes in VAT regulations or requirements from SARS to ensure that you are always compliant.

By having all these elements in place, you can effectively manage and submit your VAT returns in South Africa, ensuring compliance with tax regulations and avoiding potential issues with SARS.