Author: nitascha (page 1 of 32)

Tax season 2019: What can you expect?

SARS recently released two media statements, in which it notes several improvements made to eFiling for the 2019 tax season, including the issue of customised notices indicating specific documents required in the event of an audit or verification and a simulated outcome issued before a taxpayer has filed.

What is the tax season?

Tax season is the period in which individual taxpayers file their income tax returns to ensure that their affairs are in order. Although the majority of taxpayers who earn a salary have already paid tax through monthly pay-as-you-earn tax (PAYE), which was deducted from their salary by their employer and paid over to SARS, employees may still have an obligation to file a tax return if they earn above the filing threshold (see in more detail below). Once SARS reconciles what was paid over by the employer with what a taxpayer declares on their tax return, an assessment is issued which may result in the taxpayer needing to pay an additional tax to SARS, or is due a refund, or neither.

Taxpayers who are natural persons and meet all of the following criteria need not submit a tax return for the 2019 filing season:

  • Your total employment income for the year before tax is not more than R500 000;
  • Your remuneration is paid from one employer or one source (if you changed jobs during the tax year, or have more than one employer or income source, you must file);
  • You have no car or travel allowance, a company car fringe benefit, which is considered as additional income;
  • You do not have any other form of income such as interest, rental income or extra money from a side business; and
  • Employees tax (i.e. PAYE) has been deducted or withheld

Although you are not required to submit a tax return if you meet the above criteria, it is always good practice to ensure that you have a complete filing history with SARS. If your tax records do ever become important in future (such as in the case of remission of penalties, tax clearance certificates, etc.), you do not want to be in a position to have to prove that you were not liable to file a return in a particular year. The administrative burden in the current year certainly outweighs the potential issues down the line.

Important filing dates

  • eFiling opens on 1 July 2019 and closes on 4 December 2019.
  • Manual filing at branches opens on 1 August 2019 and closes 31 October 2019.
  • Provisional taxpayers have until 31 January 2020 to file via eFiling.

There is already a steady increase in the number of taxpayers in queues at SARS branches – it is therefore advised that you engage with your tax practitioner as soon as possible, to plan for tax season 2019.

Feel free to contact us should you have any questions or require assistance.

 

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.  Errors and omissions excepted (E&OE)

Belasting op buitelandse indiensnemingsinkomstes

Artikel 10(1)(o)(ii) bied verligting aan belastingbetalers deur nie op buitelandse indiensnemingsinkomste (“employment income”) belas te word nie aangesien die buitelandse maatskappy reeds LBS / belasting op daardie inkomste aftrek. Daar is egter sommige lande waar hul eie belastingwette bepaal dat geen belasting op buitelandse indiensnemingsinkomste afgetrek word nie. Die effek daarvan is dat sekere individue dan effektief geen belasting in enige land betaal nie.

Artikel 10(1)(o)(ii) is gevolglik hersien en die wysigings waaroor almal gons tree effektief 1 Maart 2020 in werking. Ingevolge die wysigings sal slegs die eerste R1 miljoen van buitelandse indiensnemingsinkomste vrygestel wees van belasting. Enige buitelandse indiensnemingsinkomste van meer as R1 miljoen sal in Suid-Afrika belas word deur die normale individuele belastingtabelle toe te pas. Die effektiewe belastingkoers sal bepaal word met verwysing na die totale wêreldwye inkomste en geagte inkomste, verminder met die eerste R1 miljoen ten opsigte van buitelandse inkomste uit indiensneming.

Artikel 10(1)(o)(ii) vrystelling

Die vrystelling is slegs van toepassing indien –

  • die werknemer gedurende enige 12 maande tydperk vir meer as 183 volledige dae in totaal buite Suid-Afrika was; en
  • hierdie tydperk ’n aaneenlopende tydperk van afwesigheid van minstens 60 volledige dae binne daardie 12 maande insluit; en
  • die dienste gedurende die tydperk van afwesigheid uit Suid-Afrika gelewer word; en
  • die dienste gelewer is vir of namens ’n werkgewer wat binne of buite Suid-Arika gestasioneer is.

Dit is baie belangrik om daarop te let dat hierdie vrystelling slegs op belastingpligtiges van toepassing is wat ingevolge die Inkomstebelastingwet, soos omskryf in artikel 1, as inwoners beskou word.

Inwonerstatus

Suid-Afrika maak gebruik van ’n inwonergebaseerde belastingstelsel, wat beteken dat inwoners op hul wêreldwye inkomste belas word. Al werk jy al vir jare oorsee, maar jou tuisland is steeds Suid-Afrika, moet alle buitelandse inkomste steeds aan die Suid-Afrikaanse Inkomstediens verklaar word en die toepaslike belasting daarop afgetrek word. Ten opsigte van nie-inwoners is slegs ontvangstes en toevallings uit ’n Suid-Afrikaanse bron aan normale belasting in Suid-Afrika onderhewig.

Uit bogenoemde is dit waarskynlik dat baie buitelandse werknemers nie deur die wysigings aan artikel 10(1)(o)(ii) geraak word nie, aangesien hulle in elk geval nie as inwoners (vir Suid-Afrikaanse belastingdoeleindes) beskou word nie.

’n Belastingpligtige sal as ’n inwoner beskou word indien daar aan een van die onderstaande toetse voldoen word:

(1)   die gewoonlik woonagtig-toets; of

(2) die fisiese teenwoordigheidstoets en die persoon word nie geag uitsluitlik ’n inwoner van ’n ander land te wees vir die doeleindes van enige dubbelbelastingooreenkoms nie.

’n Persoon wat ingevolge ’n dubbelbelastingooreenkoms tussen die land waarin hul werk en Suid-Afrika as ’n uitsluitlike inwoner van die ander land geag word, sal nie as ’n inwoner van Suid-Afrika kwalifiseer nie, selfs al voldoen die persoon aan die voorvereistes om as ’n inwoner te kwalifiseer.

Finansiële emigrasie (FE)

’n Algemene wanpersepsie om nie as ’n inwoner geag te word nie, is om finansieel uit Suid-Afrika te emigreer. FE is nie ’n voorvereiste om vir belastingdoeleindes te emigreer nie en dit veroorsaak of waarborg ook nie dat ’n persoon na FE ’n nie-inwonerstatus sal bekom nie.

FE is ’n formele aansoek aan die Suid Afrikaanse Reserwe Bank om ’n nie-inwoner te word vir ruilbeheerdoeleindes (exchange control purposes).

Indien ’n persoon wél finansieel emigreer het kan dit hul saak versterk dat hul nie aan die gewoonlik woonagtig-toets voldoen nie, en dus as nie-inwoner geag moet word.

Hierdie artikel is ʼn algemene inligtingsblad en moet nie as professionele advies beskou word nie. Geen verantwoordelikheid word aanvaar vir enige foute, verlies of skade wat ondervind word as gevolg  van die gebruik van enige inligting vervat in hierdie artikel nie. Kontak altyd ʼn finansiële raadgewer vir spesifieke en gedetailleerde advies. (E&OE)

Becoming a Chartered Accountant

The process of becoming a chartered accountant can be a gruelling and challenging part of your life, just ask any chartered accountant out there. Becoming a CA(SA) requires a minimum of four years of studies and three years internship that can be split into six steps:

Admission to university

To get admission to university for charted accountancy requires you to get good marks in mathematics and accounting during your grade 12 school year. This will form the base of your knowledge and, while the actual subject content is not earth-shatteringly useful, the logic and process of thinking are vital. An average of 70% for both these subjects will most likely ensure you get admission to some of the better universities in South Africa.

Degree

Enrol at university for a three-year degree towards becoming a CA(SA). Most commonly known as a B.Com Accounting or B.Com Chartered Accountancy degree. During the third and final year of your degree, you will be required to achieve high enough marks to get admission to CTA (Certificate in the Theory of Accounting), which is also your Honours year. This can sometimes be a struggle seeing as you are required to put in long hours while university life happens.

Honours year

Your CTA year can be done at university or part-time while doing your internship at a SAICA approved training office through UNISA. Some training offices even allow you to complete your degree while completing your internship. This will in some cases require that the trainee do a four-year internship contract and not the normal three-year contract. There are various after-hours part-time support programs to enrol in when doing your CTA and internship together.

Both the degree and CTA are challenging and require a lot of time and effort. Carefully consider whether you will manage to do your studies part-time while working. The pass rate for CTA while working is normally less than 20% per year, however, if you are willing to put in the hard yards, it is attainable.

Internship

After successfully completing your CTA at university, you are now required to complete a three-year internship at a SAICA accredited training office. During these three years, SAICA requires you to show competence in certain technical and soft skills. You will also need to spend a minimum number of hours on core work to show competency in the auditing environment.

Board exams

After completing CTA successfully, you will need to write two board exams and pass both to become a CA(SA). The first board exam is known as the Initial Test of Competence (ITC). You can write this test directly after completing your CTA. The second exam is known as the Assessment of Professional Competence (APC). You become eligible to write the APC exam after completing 18 months of your training contract.

CA(SA)

After successfully completing all of the above and your training office assessor signs your training contract, you can register at SAICA as a CA (SA). Once approved, you are a chartered accountant.

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.  Errors and omissions excepted (E&OE)

Value-Added remarks on Value-Added Tax (VAT)

VAT is an integral part of our economic society and is something that influences everyone, especially businesses in South Africa.  In this article, we will discuss a few do’s and don’ts regarding VAT.

  1. Valid tax invoices

In South Africa’s current tax system, vendors that are registered for VAT are allowed a deduction for the tax they pay on eligible goods or services (input tax) from the tax you collect on the sales made (output tax). Tax invoices are therefore very important to vendors as failure to provide valid documentation during VAT audits will cause the vendor to lose all the input tax being claimed on the invoice. The following requirements will overcome the challenges that may be encountered because of SARS scrutinising the validity of VAT invoices.

When the tax invoices exceed R5 000, a full tax invoice needs to be provided. For invoices of R5 000 or below they may issue an abridged tax invoice. There will be no tax invoice needed if the consideration is R50 or less. However, documents such as a sales docket or till slip will be necessary to verify the input tax deducted.

As from 8 January 2016, the following information must be reflected on a tax invoice for it to be considered valid:

  1. Contains the words “Tax Invoice”, “VAT Invoice” or “Invoice”
  2. Name, address and VAT registration number of the supplier
  3. Serial number and date of issue of invoice
  4. Accurate description of goods and/or services (indicating where applicable that the goods are second-hand goods)
  5. Value of the supply, the amount of tax charged and the consideration of the supply
  6. Name, address and where the recipient is a vendor, the recipient’s VAT registration number
  7. Quantity or volume of goods or services supplied

Note that an abridged tax invoice will only need to meet criteria 1 to 5, whereas the full tax invoice (tax invoices exceeding R5 000) must meet all criteria.

  1. When to declare output VAT/claim input VAT

The date on which VAT becomes due on a transaction is the earliest of either the payment date or the invoice date. For example, if a payment is received in advance of the invoice issued for the supply, the VAT will be due on the date of receipt of payment. It is important to note that output VAT should be declared in the period in which the invoice has been issued or the payment has been received. With regards to input VAT, here the 5-year rule applies.

This rule provides that any amount of input tax which was deductible and has not yet been deducted can be claimed in a following period but is limited to a tax period 5 years after which the tax invoice should have been issued.

  1. Overpayments by the customer

When a vendor receives an overpayment from a customer, that vendor will not declare VAT on the overpayment. If a vendor fails to refund the overpayment within 4 months of the date of the invoice, the excess amount is deemed to be a consideration and therefore output VAT should be declared on the last day of the VAT period during which the 4-month period ends at a tax fraction of 15/115.

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.  Errors and omissions excepted (E&OE)

EMP501-Rekonsiliasies

Die aanvangsdatum van die 2019-seisoen vir indiening van die jaarlikse EMP501-rekonsiliasies is deur die Suid-Afrikaanse Inkomstediens (SAID) uitgestel vanaf 1 April na 17 April 2019. Die rede vir hierdie verandering word toegeskryf aan opdaterings deur die SAID aan hul bestaande stelsels.

Die sperdatum vir indiening van bostaande rekonsiliasie, sowel as die Opgawe van Verdienste (“Return of Earnings”) (W.As 8) is 31 Mei 2019.  Die boetes vir laat indiening is as volg:

  • die nie-indiening of laat indiening van die EMP501-rekonsiliasie kan lei tot ’n 10% boete van die belastingjaar se werknemersbelastingaanspreeklikheid; en
  • die laat indiening van die W.As 8 2018 Opgawe van Verdienste by die Departement van Arbeid kan 10% van die aanslag bedrag beloop.

Daar word voorgestel om gebruik te maak van elektroniese salarisregisters wat jou in staat stel om onderliggende waardes van doeltreffendheid en betroubaarheid behoorlik te handhaaf en sodoende te verseker dat akkurate inligting aan die SAID en die Departement van Arbeid betyds voorsien word om enige boetes te vermy.

Hierdie artikel is ʼn algemene inligtingsblad en moet nie as professionele advies beskou word nie. Geen verantwoordelikheid word aanvaar vir enige foute, verlies of skade wat ondervind word as gevolg  van die gebruik van enige inligting vervat in hierdie artikel nie. Kontak altyd ʼn finansiële raadgewer vir spesifieke en gedetailleerde advies. (E&OE)

Changes regarding payroll taxes

The South African Revenue Service (“SARS”) has recently made changes with regards to the management of payroll taxes in order for employers to more effectively manage their own accounts by way of a number of functions and tools.

SARS states that the aim of these changes is to allow employers to ensure that all their necessary payroll filings are correctly reflected, payments have been correctly allocated and that all charges to their accounts such as adjustments, interest and penalties have been correctly calculated and recorded.

The most recent changes include changes to the statement of account (“SOA”) which were introduced on 26 April 2019. These changes followed complaints by employers of errors on these accounts.

The purpose of the SOA is to reflect the balance and detailed transactions for a tax year with regards to Pay-As-You-Earn (“PAYE”), the Skills Development Levy, the Unemployment Insurance Fund and the Employer Tax Incentive (“ETI”) in order to allow for employers to complete their Employer Reconciliation Declaration bi-annually.

In order to make the SOA more clear and comprehensible, SARS made changes to the manner in which financial information is being displayed. In this regard, enhanced descriptions were included for liability and non-liability transactions. Also, all liability transactions are now grouped together and sorted in transaction date order. The exemption to this is any non-financial transactions with a date earlier than the first day of the period under consideration.

In order to identify payments and to better reconcile them with the employer’s bank statements, the SOA now also makes provision for receipt numbers for payments and journals.

Furthermore, ETI transactions (which have no impact on the PAYE account) are now grouped together and reflected at the bottom of the SOA.

In addition to the above, employers previously had to request SARS to make payment reallocations and corrections on their behalf. The monthly employer declaration (“EMP201”) and payment reference number (“PRN”) system was introduced to allow employers to amend their declarations and payments themselves. This tool also allows employers to identify and follow-up on incorrect or missing transactions using the consolidated employer SOA and query function as well as to correct unallocated payments.

Employers also have access to their financial accounts online to view and query transactions processed against their accounts in real-time. SARS also allows for a case management system where employers will be able to log queries, they are unable to resolve themselves and to monitor and track SARS’ progress with regards to the query logged.

With the annual employer reconciliations submission deadline now at 31 May 2019, employers are encouraged to use all these amended functions and tools to submit accurate information and to manage their payroll taxes more effectively in the future.

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.  Errors and omissions excepted (E&OE)

Belasting op buitelandse indiensnemingsinkomstes (“Expat tax”)

Artikel 10(1)(o)(ii) bied verligting aan belastingbetalers deur nie op buitelandse indiensnemingsinkomste (“employment income”) belas te word nie aangesien die buitelandse maatskappy reeds LBS / belasting op daardie inkomste aftrek. Daar is egter sommige lande waar hul eie belastingwette bepaal dat geen belasting op buitelandse indiensnemingsinkomste afgetrek word nie. Die effek daarvan is dat sekere individue dan effektief geen belasting in enige land betaal nie.

Artikel 10(1)(o)(ii) is gevolglik hersien en die wysigings waaroor almal gons tree effektief 1 Maart 2020 in werking. Ingevolge die wysigings sal slegs die eerste R1 miljoen van buitelandse indiensnemingsinkomste vrygestel wees van belasting. Enige buitelandse indiensnemingsinkomste van meer as R1 miljoen sal in Suid-Afrika belas word deur die normale individuele belastingtabelle toe te pas. Die effektiewe belastingkoers sal bepaal word met verwysing na die totale wêreldwye inkomste en geagte inkomste, verminder met die eerste R1 miljoen ten opsigte van buitelandse inkomste uit indiensneming.

Artikel 10(1)(o)(ii) vrystelling

Die vrystelling is slegs van toepassing indien –

  • die werknemer gedurende enige 12 maande tydperk vir meer as 183 volledige dae in totaal buite Suid-Afrika was; en
  • hierdie tydperk ’n aaneenlopende tydperk van afwesigheid van minstens 60 volledige dae binne daardie 12 maande insluit; en
  • die dienste gedurende die tydperk van afwesigheid uit Suid-Afrika gelewer word; en
  • die dienste gelewer is vir of namens ’n werkgewer wat binne of buite Suid-Arika gestasioneer is.

Dit is baie belangrik om daarop te let dat hierdie vrystelling slegs op belastingpligtiges van toepassing is wat ingevolge die Inkomstebelastingwet, soos omskryf in artikel 1, as inwoners beskou word.

Inwonerstatus

Suid-Afrika maak gebruik van ’n inwonergebaseerde belastingstelsel, wat beteken dat inwoners op hul wêreldwye inkomste belas word. Al werk jy al vir jare oorsee, maar jou tuisland is steeds Suid-Afrika, moet alle buitelandse inkomste steeds aan die Suid-Afrikaanse Inkomstediens verklaar word en die toepaslike belasting daarop afgetrek word. Ten opsigte van nie-inwoners is slegs ontvangstes en toevallings uit ’n Suid-Afrikaanse bron aan normale belasting in Suid-Afrika onderhewig. Uit bogenoemde is dit waarskynlik dat baie buitelandse werknemers nie deur die wysigings aan artikel 10(1)(o)(ii) geraak word nie, aangesien hulle in elk geval nie as inwoners (vir Suid-Afrikaanse belastingdoeleindes) beskou word nie.  ’n Belastingpligtige sal as ’n inwoner beskou word indien daar aan een van die onderstaande toetse voldoen word: (1)   die gewoonlik woonagtig-toets; of(2)   die fisiese teenwoordigheidstoets en die persoon word nie geag uitsluitlik ’n inwoner van ’n ander land te wees vir die doeleindes van enige dubbelbelastingooreenkoms nie. ’n Persoon wat ingevolge ’n dubbelbelastingooreenkoms tussen die land waarin hul werk en Suid-Afrika as ’n uitsluitlike inwoner van die ander land geag word, sal nie as ’n inwoner van Suid-Afrika kwalifiseer nie, selfs al voldoen die persoon aan die voorvereistes om as ’n inwoner te kwalifiseer.

Finansiële emigrasie (FE)

’n Algemene wanpersepsie om nie as ’n inwoner geag te word nie, is om finansieel uit Suid-Afrika te emigreer. FE is nie ’n voorvereiste om vir belastingdoeleindes te emigreer nie en dit veroorsaak of waarborg ook nie dat ’n persoon na FE ’n nie-inwonerstatus sal bekom nie. FE is ’n formele aansoek aan die Suid Afrikaanse Reserwe Bank om ’n nie-inwoner te word vir ruilbeheerdoeleindes (exchange control purposes). Indien ’n persoon wél finansieel emigreer het kan dit hul saak versterk dat hul nie aan die gewoonlik woonagtig-toets voldoen nie, en dus as nie-inwoner geag moet word.

Hierdie artikel is ʼn algemene inligtingsblad en moet nie as professionele advies beskou word nie. Geen verantwoordelikheid word aanvaar vir enige foute, verlies of skade wat ondervind word as gevolg  van die gebruik van enige inligting vervat in hierdie artikel nie. Kontak altyd ʼn finansiële raadgewer vir spesifieke en gedetailleerde advies. (E&OE)

Sale of shares: Income vs revenue – Back to first principles

The distinction between amounts of a capital nature as opposed to a revenue (or income) nature is essential, and over the years, few other topics have enjoyed so much attention in our tax courts. Although most taxpayers appreciate this distinction, it is essential to revisit the core principles from time to time, to ensure that taxpayers are not caught off-guard when accounting for the tax on the sale of shares.

Non-capital amounts are subject to tax at a higher effective rate compared to capital profits. The difference arises from the annual exclusion that applies to capital gains for natural persons, and the inclusion rate applied to it. In the case of natural persons, the maximum effective rate for capital gains is 18% (compared to 45% on revenue gains); companies are taxed at 22.4% (compared to 28%) and trusts at 36% (compared to 45%).

The departure point for the analysis is how long a person has held the shares. In terms of 9C of the Income Tax Act, 58 of 1962 (the Act), where shares have been held for a period of at least three years, the amount received in respect of the share sale will automatically be deemed to be of a capital nature. Consequently, any gain would constitute a capital gain. Section 9C does not require an election, and its application is automatic and compulsory. Importantly, profits on the disposal of shares held for less than three years is not automatically of a revenue nature. The nature of such profits must be determined using the general capital versus revenue principles. Apart from the three-year holding rule in section 9C, the Act does not provide objective factors to distinguish between capital and revenue gains on share disposals. General principles for making this distinction have been formulated in courts over many years.

A person’s intention (both at the stage of purchase and disposal) is the essential factor in determining the nature of profits. If shares were acquired with mixed intentions (bought partly to sell at a profit and partly to hold as an investment), the person’s intention would be determined by the dominant or main purpose. South African courts have held that a taxpayer’s evidence as to intention must be tested against the surrounding circumstances of the case, which include, amongst other things, the frequency of transactions, method of funding and reasons for selling.

Where shares have been purchased and sold as part of a profit-making scheme, gains will be regarded as revenue in nature. In this regard, although not conclusive, the frequency and scale of share transactions is an important consideration. Where shares are bought regularly for the main purpose of resale at a profit, it will be regarded as trading stock and profits will be revenue in nature. An occasional sale of shares yielding a profit suggests that a person is not a share trader engaged in a scheme of profit-making. Where profits have been made through the mere realisation of investment, there is no scheme of profit-making. Although it is possible that a once-off venture involving the acquisition of shares can comprise a venture resulting in the shares becoming trading stock, the “slightest contemplation of a profitable resale” is not necessarily determinative for a gain to be revenue in nature.

Profits on the disposal of shares acquired for long-term capital growth and dividend income will more likely be capital in nature. Shares sold for a profit very soon after the acquisition is, in most cases, an indication of the potential revenue nature of those profits. However, that measure loses a great deal of its importance when there has been some intervening act, for example, a forced sale of shares.

Taxpayers are encouraged to take careful note of the distinction between income and capital gains since a different interpretation by SARS could result in a lengthy (and costly) dispute.

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.  Errors and omissions excepted (E&OE)

Suid-Afrikaanse Reserwebank prosedures

Die Suid-Afrikaanse Reserwebank (“SARB”) is die sentrale bank van die Republiek van Suid-Afrika en sy primêre doel is om prysstabiliteit te bereik en in stand te hou in die belang van gebalanseerde en volhoubare ekonomiese groei in Suid-Afrika. ’n Deel van die SARB se funksies is om ’n databasis van alle leningsverpligtinge van Suid-Afrikaanse inwoners aan nie-inwoners, in stand te hou.

In gevalle waar leningverpligtinge tussen Suid-Afrikaanse inwoners en nie-inwoners gemaak word, moet goedkeuring vooraf van die SARB verkry word. Wanneer ’n aansoek by die SARB gedoen word, sal sekere inligting en stawende dokumente deur die SARB aangevra word voordat die transaksie goedgekeur en die aansoeker van ’n buitelandse leningverwysingsnommer voorsien word. Die volgende inligting en ondersteunende dokumente is oor die algemeen voldoende

  • Afskrifte van enige ooreenkomste met betrekking tot die bepalings en voorwaardes van die transaksie. In hierdie gevalle is dit belangrik om te verseker dat enige onttrekkingbepalings, rentekoerse ens. aan die SARB oorgedra word om hul rekords dienooreenkomstig by te werk. Indien daar geen dokumente is nie, kontak u adviseur om te help met die opstel daarvan.
  • Bevestiging van die bron van befondsing en die verhouding tussen die partye.
  • Voltooide en getekende aansoekvorm wat van u bank verkry kan word.

Die voormelde dokumente kan vergesel word van ’n beknopte oorsig van die transaksie om die SARB en sy verteenwoordiger ’n duidelike agtergrond van die transaksie en die beduidende bepalings daarvan, te gee. Sodra die SARB die dokumente verwerk het en alles in orde is, sal u ’n dokument ontvang met ’n buitelandse leningverwysingsnommer.

Daar word algemeen aanvaar dat SARB-goedkeuring verkry moet word voordat buitelandse fondse in Suid-Afrika ingestel word. Dit is belangrik om daarop te let dat selfs in omstandighede wanneer kontant nie onmiddellik vloei nie, ’n lening geskep word. Dit sal ook binne die omvang van die leningsbeleid van die SARB val en daarom moet goedkeuring vir sodanige transaksies/ondernemings verkry word.

Hierdie artikel is ʼn algemene inligtingsblad en moet nie as professionele advies beskou word nie. Geen verantwoordelikheid word aanvaar vir enige foute, verlies of skade wat ondervind word as gevolg  van die gebruik van enige inligting vervat in hierdie artikel nie. Kontak altyd ʼn finansiële raadgewer vir spesifieke en gedetailleerde advies. (E&OE)

Value-added Remarks on Value-added Tax (VAT)

VAT is an integral part of our economic society and is something that influences everyone, especially businesses in South Africa.  In this article, we will discuss a few do’s and don’ts regarding VAT.

  1. Valid tax invoices

In South Africa’s current tax system, vendors that are registered for VAT are allowed a deduction for the tax they pay on eligible goods or services (input tax) from the tax you collect on the sales made (output tax). Tax invoices are therefore very important to vendors as failure to provide valid documentation during VAT audits will cause the vendor to lose all the input tax being claimed on the invoice. The following requirements will overcome the challenges that may be encountered because of SARS scrutinising the validity of VAT invoices.

When the tax invoices exceed R5 000, a full tax invoice needs to be provided. For invoices of R5 000 or below they may issue an abridged tax invoice. There will be no tax invoice needed if the consideration is R50 or less. However, documents such as a sales docket or till slip will be necessary to verify the input tax deducted.

As from 8 January 2016, the following information must be reflected on a tax invoice for it to be considered valid:

  1. Contains the words “Tax Invoice”, “VAT Invoice” or “Invoice”
  2. Name, address and VAT registration number of the supplier
  3. Serial number and date of issue of invoice
  4. Accurate description of goods and/or services (indicating where applicable that the goods are second-hand goods)
  5. Value of the supply, the amount of tax charged and the consideration of the supply
  6. Name, address and where the recipient is a vendor, the recipient’s VAT registration number
  7. Quantity or volume of goods or services supplied

Note that an abridged tax invoice will only need to meet criteria 1 to 5, whereas the full tax invoice (tax invoices exceeding R5 000) must meet all criteria.

  1. When to declare output VAT/claim input VAT

The date on which VAT becomes due on a transaction is the earliest of either the payment date or the invoice date. For example, if a payment is received in advance of the invoice issued for the supply, the VAT will be due on the date of receipt of payment. It is important to note that output VAT should be declared in the period in which the invoice has been issued or the payment has been received. With regards to input VAT, here the 5-year rule applies.

This rule provides that any amount of input tax which was deductible and has not yet been deducted can be claimed in a following period but is limited to a tax period 5 years after which the tax invoice should have been issued.

  1. Overpayments by the customer

When a vendor receives an overpayment from a customer, that vendor will not declare VAT on the overpayment. If a vendor fails to refund the overpayment within 4 months of the date of the invoice, the excess amount is deemed to be a consideration and therefore output VAT should be declared on the last day of the VAT period during which the 4-month period ends at a tax fraction of 15/115.

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.  Errors and omissions excepted (E&OE)

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