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Thread: Implications of using another companies Vat number

  1. #11
    Silver Member Greig Whitton's Avatar
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    Quote Originally Posted by Dave A View Post
    You know, SARS still has the voluntary disclosure program running - no penalties and no interest if you come clean (and pay up the actual tax owed to SARS). Approaching SARS might well be the way to go for a fairly clean exit from a messy situation.
    Excellent advice and almost certainly the way to go. It's going to look suspicious ("I didn't know that I couldn't use someone else's VAT number ... honest!") but I don't see any other viable alternative. With a bit of luck, penalties may be waived or (at the very least) reduced (especially if the VAT portion is relatively negligible).

    Retaining the client may be the trickier challenge. I guess you have to choose between coming clean and trying to build a relationship on trust (and risk losing the client) or keeping quiet about the whole thing and settling for a relationship that will always be on thin ice (and hoping they never find out).

    Founder of Growth Surge - Helping entrepreneurs create more wealth and enjoy more freedom.

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    Diamond Member Justloadit's Avatar
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    The worst part here is that the client is seen to be negligent here by SARS, cos they never requested a copy of the VAT Tax certificate, nor did the client do a verification of the VAT number before claiming the input VAT.

    How many of us actually request a copy of the VAT certificate from our supplier and verify that it is correct before claiming the VAT from the invoice?
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    So I phoned Sars:

    The lady first suggested that it should just be done on the his new Vat number backdating.

    But I reminded her the vat number on the Invoice is not going match his new Vat number.

    The end result "It's complicated come into a branch"

    If the vat is paid on the old number the Company name on the Vat Invoice doesn't match. On the new number the Vat number wont match.

    What a mess!!

    Ill check out the voluntary disclosure thanks Dave...

    Hopefully it can be paid and solved soon.Calculate input output Vat owed,fill in the forms and pay..

    For completion's sake I will update what the verdict is after visiting the branch.

    Thank you for all the help!

  4. #14
    Diamond Member Justloadit's Avatar
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    Maybe issue a credit note with the old VAT number, and issue a new invoice with the new VAT number. Provide copy of VAT registration form with new VAT number to client for their records.
    Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
    Solar pumping, Solar Geyser & Solar Security lighting solutions - www.microsolve.co.za

  5. #15
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    Quote Originally Posted by ac1 View Post
    So I phoned Sars:

    The lady first suggested that it should just be done on the his new Vat number backdating.

    But I reminded her the vat number on the Invoice is not going match his new Vat number.

    The end result "It's complicated come into a branch"

    If the vat is paid on the old number the Company name on the Vat Invoice doesn't match. On the new number the Vat number wont match.

    What a mess!!

    Ill check out the voluntary disclosure thanks Dave...

    Hopefully it can be paid and solved soon.Calculate input output Vat owed,fill in the forms and pay..

    For completion's sake I will update what the verdict is after visiting the branch.

    Thank you for all the help!

    Why are you doing all this ac1 ? Why don't you let that person do it ?

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    Justloadit yes I think that is a good Idea, I think this is what SARS is going to require at the end as well.

    The guy is a bit scared of doing this because he knows there is a almost 90% chance that he will loose this client if he does this.

    But yes he made his bed.

    HRS its my friend's husband I feel bad for him, I use to do accounting and volunteered to help.

    I know he worked so hard the last year to build his business physically, although he has seriously neglected the accounting and tax side.

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