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News & Press: SARS operational & eFiling questions

Remedies where vendor backdates a VAT registration

09 December 2014   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

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 invoices?

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 decision.


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