Results 1 to 6 of 6

Thread: VAT write off

  1. #1
    New Member
    Join Date
    Jul 2017
    Location
    Cape Town
    Posts
    3
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Question VAT write off

    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

  2. #2
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    21,309
    Thanks
    3,090
    Thanked 2,488 Times in 2,092 Posts
    Blog Entries
    12
    What P&L account do you propose posting against?
    The trouble with opportunity is it normally comes dressed up as work.

    Alcocks Electrical Services | Alcocks Pest Control & Entomological Services

  3. #3
    New Member
    Join Date
    Jul 2017
    Location
    Cape Town
    Posts
    3
    Thanks
    0
    Thanked 0 Times in 0 Posts
    i have a irrecoverable expense account on my P&L or what would be the best solution?

  4. #4
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    21,309
    Thanks
    3,090
    Thanked 2,488 Times in 2,092 Posts
    Blog Entries
    12
    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.
    The trouble with opportunity is it normally comes dressed up as work.

    Alcocks Electrical Services | Alcocks Pest Control & Entomological Services

  5. #5
    New Member
    Join Date
    Jul 2017
    Location
    Cape Town
    Posts
    3
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Our business only claim Input VAT...no output tax, problem arises when there assessments and SARS denies a portion

  6. #6
    Full Member padjakkels's Avatar
    Join Date
    Sep 2016
    Location
    Colesberg
    Posts
    45
    Thanks
    5
    Thanked 6 Times in 6 Posts
    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.

Similar Threads

  1. [Question] Tax implications on Write off of inter-company loans
    By malose in forum Tax Forum
    Replies: 3
    Last Post: 31-Mar-17, 09:37 AM
  2. Write a program ?
    By HR Solutions in forum General Business Forum
    Replies: 3
    Last Post: 22-Apr-14, 09:46 AM
  3. How to Write a Business Plan?
    By lisa13us in forum Business Finance Forum
    Replies: 19
    Last Post: 04-Jul-13, 10:43 AM
  4. I need somebody to write an application
    By adrianh in forum Technology Forum
    Replies: 4
    Last Post: 17-Jan-11, 05:54 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •