Welcome to The Forum SA. As a visitor you have read only access to the public content areas of this website. You will have to register as a member to access all content, post messages and network with our members. Membership is free and registering is quick and easy. You can click here to register now and become a member within minutes.
Hi all, quick question...i have a VAT balance on my balance sheet that I need to adjust to show the true value at YE. Can one write off the balance to P&L? Unfortunately time is of the essence so unable to go through all the transactions for FY.
Appreciate the assistance
How did the incorrect balance arise in the first place?
Output VAT does not manifest in any P&L account.
If any VAT on purchases is not claimable as Input VAT, ordinarily it is included in the capture of the expense.
Shouldn't that portion then be added back to the expense?
Eg. let say you tried to claim VAT of R14 back entertainment of R100. Your expenses shows R100, which is correct. Input VAT shows R14. But SARS don't allow it.
So now you expense must change to R114, so that is why you have to add the portion back to your expense.
We process personal data about users of our site, through the use of cookies and other technologies, to deliver our services, personalize advertising, and to analyze site activity. We may share certain information about our users with our advertising and analytics partners. For additional details, refer to our Privacy Policy.
By clicking "I AGREE" below, you agree to our Privacy Policy and our personal data processing and cookie practices as described therein. You also acknowledge that this forum may be hosted outside your country and you consent to the collection, storage, and processing of your data in the country where this forum is hosted.
Tweet
Comment