I want to know if I am loosing, paying extra tax, trying to break even or being really foolish by helping people get Tenders. I pay good money to have my books done by an accounting company, SARS came and did a random audit and walked away happy, no issues at all. I realise I am paying accounting fees for any extra work and also bank charges when paying the people being helped.
I get the Tender, they deliver the goods with my R50 000 invoice showing
R7000 VAT with a total of R57 000.
I get paid the R57 000 after 30 or so days and pay out the same amount
R57 000 to the company supplying the goods.
I get an Invoice from the supplier for a total of R57 000 and submit the invoice as a payment out. Am I loosing much? Should I maybe charge vat on the suppliers R57 000.(input/output)
This will happen about 5 times a year. Amounts from R32 000 to R80 000.
Some people struggle to get registered or get Tax clearances, so I help them out.