[Question] Vat on previous year expense

[StephanieB]

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

[Christel]

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.

[StephanieB]

Thank you so much.

[geraldenek]

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.

[Justloadit]

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.