~ Article posted by MGI Bass Gordon

There has been an anomaly in VAT law which new legislation has now largely resolved.

The problem with the old position

It has always been simple to correct calculable errors in tax invoices, such as price. A VAT debit or credit note would fix such mistakes. However, other errors such as an incorrect name or VAT number were legally insoluble. This is because the Act prohibits the issuing of more than one VAT invoice for a supply of a product or service. In terms of the law, a deduction for VAT is not allowed if there is an error (even a technical error) on the invoice.

We have seen a substantial increase in SARS compliance monitoring through their audit department and a requirement to submit an IT14SD.

The IT14SD requires the preparation and submission to SARS of a supplementary declaration (hence the “SD”) to the ITR14 Income Tax return, which includes the following: 

Nearly 170 years before the invention of Bitcoin, the journalist Charles Mackay noted the way whole communities could "fix their minds upon one object and go mad in its pursuit". Millions of people, he wrote, "become simultaneously impressed with one delusion, and run after it, till their attention is caught by some new folly more captivating than the first".