Professional Documents
Culture Documents
2023 VAT - 1 - Administration 1
2023 VAT - 1 - Administration 1
2023 VAT - 1 - Administration 1
TAXF 211
VAT– ADMINISTRATION
2023
2023
Prof K Coetzee
SU 5
SATSA:
LEARNING OUTCOMES
Therefore:
• define the most important definitions in the
VAT Act;
• identify and explain what accounting bases
may be used and explain which bases to apply
for;
• explain how long a VAT period is;
• identify when and at what rate VAT is levied;
• determine the value of a supply;
• state when a supply is an exempt supply;
3
LEARNING OUTCOMES (continued...)
Admin - registration
Registration: time of supply; basis; tax
invoices tax periods; fines etc
3. Vendor – compulsory registration
(2.6.3.1)
Continued…
• Sec 23(1) person is required to register
– Taxable supplies > R 1 mill in prior 12 months
(at end of month during which complies)
Continued…
8
3. Vendor – compulsory
registration
9
Example 3
EXCEPT
If every business in a company – Supplies > R1 million
Group companies to register - except a 8 (25)
Branches or divisions which
- Each branch or division has independent accounting system
- Each can be indepently identified iro nature of activities
BUT all taxable supplies have to added together to determine the
R1 million
Income
Price R 100
+ OUTPUT TAX
R 15
15%
= R 115
15
Pay R 15 to SARS
Fakulteit
Ekonomiese- en
Bestuurswetenskappe
1. Invoice basis – OR
2. Payments basis -
The time of supply depends on the accounting basis
Admin - INVOICE BASIS
Invoice is issued, or
Payment received
EXCEPT:
With real estate - when purchase price is received
EXCEPT - if it is a connected person
19
Example 1 – INVOICE BASIS
• Natural Person
– < R 2.5m supplies (VAT exclusive) in 12 months
– Written request to SARS
• BUT for Natural person:
– If a specific supply > R 100 000 (VAT incl)
– Account on invoice basis for this supply
– Except for fixed property
• OTHER NON-SPECIFIC VENDORS:
A natural person (other than a trustee) or
Unincorporated body of persons of which all are individuals
• As long as:
The total value of taxable supplies - for 12 months starting at
the beginning or ending at the end of a tax period-not likely
to exceed R2, 5 million(including VAT) could also be done vice
versa
EXCEPT: Delivery of R100 000 or more - since 1997
Administration companies
30
Admin - TAX PERIODS – S 27
Excludes:
34
Payment of VAT
Cheque payments :
– Complete in full – South African Revenue Services
– Cross as “not negotiable/transferable”
36
Refunds (2.3.5)
a) R6 000
b) R15 000 38
Example 3
(a) (b)
R R
39
Admin - CHANGE OF BASIS
* NB – it determines in
which VAT period
* Rules applicable to both
INPUT and OUTPUT VAT
General Rule – earliest of
• Date of invoice or
• Date payment received by supplier
Time of supply– Sec 9
43
• Invoice =
– document
– notifies
– of an obligation
– to make a payment
• Date of delivery or
supply of service –
NO role in
determining time of
supply
Value of the supply – Sec 10
44
Cheque payments :
– Complete in full – South African Revenue Services
– Cross as “not negotiable/transferable”
57
Refunds (2.3.5)
a) R6 000
b) R15 000 59
Example 3
(a) (b)
R R
60
Admin - CHANGE OF BASIS
No cheque > R100 000 if it is for more than one tax period
Check made out to: South African Revenue Services and crossed
Category C - month have electronic returns