Customs VAT not claimed

[cyclesmith]

The company I work for imports a lot of equipment for resale from China. Yesterday I discovered that the accountants expensed the customs VAT in the income statement and claimed 14% VAT on the expense.. #nocomment

I know SARS is strict with regards to VAT refunds, but can we still claim the customs VAT as input tax, for periods as far back as March 2015? It amounts to over R2m, so it would make a huge difference for us..

 

[f2wohf]

The company I work for imports a lot of equipment for resale from China. Yesterday I discovered that the accountants expensed the customs VAT in the income statement and claimed 14% VAT on the expense.. #nocomment

I know SARS is strict with regards to VAT refunds, but can we still claim the customs VAT as input tax, for periods as far back as March 2015? It amounts to over R2m, so it would make a huge difference for us..

From what I remember you have 3 years to offset the VAT. Not sure if you can claim for 3 years as well.

Setting up a meeting with the VAT people at SARS will probably be your best chance.

Edit: you apparently have 5 years. https://www.saica.co.za/integritax/2012/2119._Basic_concepts.htm

 

[cyclesmith]

Well, if we have five years, I better start digging for some more invoices! :crylaugh:

Thanks, will see if I can get hold of someone at SARS.