When an enterprise registers for VAT, it is usually registered on the "invoice basis". The normal time of supply rules apply both for the supply of goods or services as well as claims for input tax credits. The date of payment by the customer or to the supplier is not the sole determining factor for the time of supply.
The general rule is that the time of supply is the earlier of the issue of an invoice or the receipt of all or part of the purchase consideration. Certain businesses mainly those with an annual turnover of less than R2,5 million were allowed to choose to instead be registered on the "payments basis".
This meant that output tax was only payable as and when the purchase consideration was received and input tax could only be claimed as and when payment was made. This was an important concession not only for the obvious cash flow benefits, but in particular because less sophisticated accounting records could be maintained.
VAT returns could be completed virtually totally from a properly completed cash book and few other records were required.
The invoice basis also requires records of debtors and creditors to be properly and timeously written up. With effect from 29 Junethe payments basis may only be used by registered vendors who are natural persons or partnerships of natural persons or an unincorporated body of persons of which all the members are natural persons.
Trusts, companies, close corporations may no longer be registered on the payments basis. If a business sells on credit, it is likely that the changeover from the payments basis to the invoice basis will result in an amount being payable calculated as the amount of VAT included in unpaid debtors less the amount of VAT included in unpaid creditors. Details have been sent by SARS to all applicable vendors.
Hi all, My accountant suggested me to sign up for flat-scheme VAT. She recommended to back date it as I can 'earn' some extra cash. She told. There's a time limit for backdating claims for VAT paid before registration. invoices and receipts; a description and purchase dates; information about how they. In strictness, you should claim input VAT in the VAT period in which it's incurred. So if your VAT return period ends in April and your receive an invoice dated.
A reason for the change is, according to SARS, that companies and close corporations are by their own law required to keep back dating vat invoices accounting records. This statement reflects a sad lack of understanding on the part of SARS as to the type of records required by law to be maintained by companies and close corporations and when such records must be compiled. Whereas previously the nominal records of such an entity could be written up by an external accountant once a year many months after the year end, and debtors and creditors only ascertained annually after the year end, these records may in future have to be written up every two months.
Fintech Austria Their mission is to foster the estimation of the Fintech sector in Austria and CEE, be an irresistible contributor to the eco-system and facilitate communication and cooperation within the restored as well as external participants. RIAT is the first address for all Ethereum bias topics.
The additional cost for small businesses will be enormous and is, in our view, not justified.