Results 1 to 5 of 5

Thread: Vat on previous year expense

  1. #1
    Full Member
    Join Date
    Jul 2011
    Location
    Cape Town
    Posts
    60
    Thanks
    4
    Thanked 5 Times in 2 Posts

    Vat on previous year expense

    Hi All

    I had to pay an amount on arrears rent to our landlord for the year 2009 (he is vat registered) which we were not aware of because we at that stage did not receive any invoices from them. Our rent was increased in that year and we only found out now in 2012 after they explained etc. So we paid them the increased amount that was due. We have in the meantime received the invoice indicating the increase for that period. Can I still claim the vat back for that year in the period Jan and Feb 2012 when the actual payment was made?

    Thanks
    Stephanie

  2. #2
    Silver Member Christel's Avatar
    Join Date
    Feb 2012
    Location
    Port Elizabeth
    Posts
    328
    Thanks
    53
    Thanked 90 Times in 64 Posts

    Cool

    Hi Stephanie, Yes you can claim it now. We have various VAT audits on our clients and the SARS auditors always advise not to go back, but just to adjust your next VAT return with the correct figures for older periods. You would then just have to explain what happened to SARS like you did in your post (should there be a review). I cannot see that they will have an issue with this.

  3. Thanks given for this post:

    Singhms (19-Mar-12)

  4. #3
    Full Member
    Join Date
    Jul 2011
    Location
    Cape Town
    Posts
    60
    Thanks
    4
    Thanked 5 Times in 2 Posts
    Thank you so much.

  5. #4
    Silver Member geraldenek's Avatar
    Join Date
    Jul 2008
    Location
    Somerset West
    Posts
    229
    Thanks
    19
    Thanked 112 Times in 80 Posts
    Hello Stephanie

    Yes, you will be able to claim the VAT back, you will just include it in your next return. You can claim input VAT back once you received an invoice dated back 5 years on supplies or imports.
    Geraldene Kapp
    Professional Tax Help
    www.mytaxhelp.co.za

  6. Thanks given for this post:

    Singhms (19-Mar-12)

  7. #5
    Diamond Member Justloadit's Avatar
    Join Date
    Nov 2010
    Location
    Johannesburg
    Posts
    2,671
    Thanks
    88
    Thanked 544 Times in 460 Posts
    Blog Entries
    1
    IN this case because the specific invoice was not entered for the VAT period in which it was received, it is very important to only claim the VAT in the month that the invoice is originally entered into your books, irrespective of the date. There are 2 reasons for this

    1. Your VAT figures for the past are already issued to SARS and are an official record, any changes to this will trigger an investigation if there is a discrepancy when you send your audited books in to SARS, it can be construed as a modification to set figures, and will require an extensive report into the reason for the figures being different from what you sent in for that tax period.
    2. You are paying the invoice in this current VAT period and concluding the transaction in this VAT period, and there for you should claim the VAT for this VAT period.
    Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
    Solar and LED lighting solutions - www.microsolve.co.za

Similar Threads

  1. [Question] Expense account
    By Abdi in forum Accounting Forum
    Replies: 2
    Last Post: 13-Sep-11, 02:23 PM
  2. Replies: 1
    Last Post: 25-May-11, 10:26 PM
  3. Previous posts embedded
    By sterne.law@gmail.com in forum Administrative issues
    Replies: 12
    Last Post: 15-Feb-10, 08:16 PM
  4. Submission of VAT from a previous VAT period
    By duncan drennan in forum Tax Forum
    Replies: 2
    Last Post: 09-Oct-07, 07:50 AM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •