What are the obligations of the VAT vendor?
The registration of a business for VAT purposes, referred to as a vendor, places certain recordkeeping duties and obligations on that vendor, for example the vendor must ensure that –
- VAT is collected on taxable supplies;
- VAT is included in all prices advertised or quoted;
- returns are submitted and payments are made on time;
- tax invoices are issued for supplies made, where required; and
- documentation is obtained and retained to evidence the liability for VAT.
Retention of tax invoices for supplies made, bills of entry for goods imported or exported and the general maintenance of proper accounting records and documents are all very important compliance aspects of how the whole VAT system operates. These documents form an audit trail which SARS uses to verify that the vendor has complied with the law. A vendor is required to retain these records for a period of five years.
When should the VAT be paid?
How should the VAT be paid?
VAT can only be paid by one of the following payment methods:
- SARS eFiling system;
- Electronic Funds Transfer (EFT);
- At any of the following selected banks:
- Amalgamated Banks of South Africa (ABSA);
- First National Bank (FNB);
- Nedbank; or
- Standard Bank.
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