VAT: The Difference Between Standard-Rated, Zero-Rated, and Exempt Supplies

Value-added tax (VAT) is one of South Africa’s most significant indirect taxes, affecting businesses and consumers alike. However, while most people know that the standard VAT rate is 15%, fewer understand that not all goods and services are treated the same for VAT purposes. The Value-Added Tax Act 89 of 1991 (as amended) divides supplies […]

A Corporate Tax Checklist for Business Owners

Submitting your company income tax return (ITR14) to the South African Revenue Service (SARS) involves far more than simply sending your trial balance to your accountant. Unlike individual tax submissions, corporate returns require detailed reconciliation across multiple operational tax types, including Value Added Tax (VAT), Pay-As-You-Earn (PAYE), and Provisional Tax. Missing key schedules or failing […]

VAT on short-term lettings and commissions

Are you acting as agent or principal and what would be the pragmatic approach? There are very few people across the world who haven’t heard of Airbnb. Started in San Francisco in 2008, this multi-billion-dollar NASDAQ-listed company that employs around 7,000 people has revolutionised the short-term letting industry. Over four million property owners around the […]

Mastering record keeping: How to meet SARS’s electronic documentation standards

Too often, taxpayers seem to forget that the most important aspect of dealing with SARS is to ensure that they can discharge their burden of proof. As a taxpayer, it is on you to provide SARS with the relevant material that, on a balance of probabilities, supports your position. Taxpayers are required to retain relevant […]

How SARS catches tax-dodgers

SARS auditors employ methods that most people wouldn’t have even considered. How does the South African Revenue Service (SARS) catch those who do not contribute their fair share to state coffers? Here are some tests that SARS auditors perform to see if you are being somewhat economical with the truth. Comparing VAT returns to your […]

What are the requirements for self-invoicing?

As a result of the specific nature of goods, it is common practice that certain recipients of goods and services “self-invoice” when they receive goods or services from their suppliers. In other words, they do not receive an invoice from the suppliers – instead, they invoice themselves. This scenario is typically found where the volume or […]

Smart accounting: Are you VAT compliant?

The last several years have seen an increase in “smart accounting systems” that have online capabilities and that can integrate with various other business solutions. These smart accounting systems have revolutionised traditional accounting, and there can be no question that many businesses run a more organised and financially sound operation as a result of the […]

Tax oddities and VAT frustrations

The Tax Administration Act provides for the audit and verification of taxpayers’ tax returns for all taxes administered by the Commissioner for the South African Revenue Service (SARS). In many instances, such requests for information are general, boiler-plate letters received by taxpayers, not indicating specifically what additional information SARS requires in the circumstances and which supporting […]