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Navigating the documentary requirements for VAT

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VAT vendors are required to ensure that sufficient documentary requirements are available and on hand for inspection by the South African Revenue Service (SARS) in order to substantiate and support the VAT treatment on any/all transactions.

Section 55 of the Value-Added Tax Act No. 89 of 1991 (VAT Act), read together with Chapter 4 of the Tax Administration Act No. 28 of 2011 (TA Act) provides that a vendor must keep certain records, books of account and/or documents  as required by the VAT Act or by SARS.

Generally speaking, the issue is that a tax manager does not have the opportunity to review all of the required documents until such time that a verification/audit is underway. With large companies it is often next to impossible to review all of these documents and the tax manager is reliant on the data within the ERP system when preparing a VAT return.

This guide can be used as a quick reference for tax managers as well as for training purposes for the team capturing the data to ensure accuracy of the information that a tax manager will work with.

 

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