How to make cents of VAT

[duncan drennan]

So SARS allows Rands only for the submission of your output VAT, but that results in a small difference if you enter your exact input VAT.

What is the accepted way of handling this? Just including the difference in your input VAT?

So say you total VAT consideration is R1050.43, then the VAT amount is R129.00, but SARS only allows the rands to be entered, and does an automatic calculation of VAT on eFiling. This would result in R1051 being entered, with a resulting R129.07 VAT amount.

Is it acceptable to then just adjust the input VAT by 7c?

[Dave A]

I put in the exact amount of output VAT due and it calculates and rounds backwards to auto-generate the total sales figure. Keeps the books tidy, although it does tend to produce a small discrepancy when my auditors compare reported turnover via VAT returns filed vs turnover shown per the financial statements. I don't think SARS is going to quibble over R50.00 or thereabouts over the course of a year. And my auditors note it as "not material."

After all, this way you are paying over exactly what has been shown as VAT per your tax invoices.