The VAT Act also prescribes the timeframe within which a tax invoice must be issued (i.e. The VAT Act prescribes that a tax invoice must contain certain details about the taxable supply made by the business as well as the parties to the transaction. Without a valid tax invoice, a business cannot deduct input tax paid on business expenses. The most crucial document in such a system is the tax invoice. South Africa operates on a VAT system whereby VAT registered businesses are allowed to claim the VAT (input VAT) incurred on business expenses from the VAT collected (output VAT) on the supplies made by the business. Please read through the following crucial information carefully with regard to valid VAT invoices. It is very important to pay attention to the invoices that are sent to your accountants as these invoices need to be “valid” before the input VAT can be claimed from the South African Revenue Service (SARS). This is something small that is very much neglected when it comes to monthly bookkeeping. This brings more focus on VAT compliance and more specifically on when we can claim input VAT on an invoice, and what constitutes a valid VAT invoice. With the change in VAT rate from 14% to 15%, VAT has come under the spotlight. This enables you to claim input VAT from SARS. When making a purchase for your business, you should always ensure you receive a valid VAT invoice.
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