Q: Our client
voluntarily registered for VAT in August but made the date liable for 1st of February
2014, all their sales invoices do not charge VAT or have VAT numbers on them until
August 2014 but they have been liable as from February.
What would be the best way to approach the situation? Should
the client re-issue the invoices? Or submit the returns without those specific
A: We are not
sure why the SARS back dated the effective date of the registration - section
23(4)(a) in our view envisages a date after the date of the application. In our view the best approach would be to
request SARS to change the effective date to a future date. We don’t believe that it is possible, in
terms of the Act, to re-issue the invoices.
The deduction of input tax would also be problematic as the supplier
invoice (over R5 000) would then also not meet the documentary
requirements. SARS must advise the new
vendor of how to treat this and it may then well be possible to submit nil
returns if they so direct.
Disclaimer: Nothing in
this query and answer should be construed as constituting tax advice or a tax
opinion. An expert should be consulted for advice based on the facts and
circumstances of each transaction/case. Even though great care has been taken
to ensure the accuracy of the answer, SAIT do not accept any responsibility for
consequences of decisions taken based on this query and answer. It remains your
own responsibility to consult the relevant primary resources when taking a
Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.
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