Does turnover include VAT on balance sheet?

[Tallboy]

Any accountants out there? When the turnover is calculated on a balance sheet for SARS, for an Inc. does it include VAT or do you have to remove vat by dividing by 1.14 or 1.15?

 

[370z]

Your turnover figure should already exclude VAT but if for some reason it doesn't exclude VAT, you should remove it.

 

[GrootBaas]

Turnover is stated on your income statement, not balance sheet. It should exclude VAT.

 

[Tallboy]

Thanks. Just trying to make sense of my accountant's statements. But I misread it's actually Revenue in "STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 28 FEBRUARY 2018". This seems to include VAT.

 

[AchmatK]

Thanks. Just trying to make sense of my accountant's statements. But I misread it's actually Revenue in "STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 28 FEBRUARY 2018". This seems to include VAT.

Vat is only reflected on the balance sheet and never on any of the accounts on the income statement.

 

[GrootBaas]

Thanks. Just trying to make sense of my accountant's statements. But I misread it's actually Revenue in "STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 28 FEBRUARY 2018". This seems to include VAT.

Yes that's the new name for the Income Statement. But the turnover showing there doesn't include VAT.

Generally VAT never touches the Statement of Comprehensive Income. It gets booked straight to the balance sheet and when it is paid monthly the payment also goes to the balance sheet.

 

[SZN]

Thanks. Just trying to make sense of my accountant's statements. But I misread it's actually Revenue in "STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 28 FEBRUARY 2018". This seems to include VAT.

It shouldn't include VAT

 

[Tallboy]

Problem is my turnover/revenue (are they the same?) is closer to my accountants figure if I include VAT.

 

[Arthur]

You might just have a reason to boot up the ol' cellphone and call your accountant in the morning.

 

[Tallboy]

We did exchange some emails. I am now more in the dark though. Wish I knew more.

 

[Tallboy]

Can revenue be invoiced based instead of "money into my bank account"?

 

[bekdik]

I presume that all the comments pertaining to VAT only apply if you are a VAT enterprise? If you can't claim input tax, then presumably VAT is just an expense?

 

[GrootBaas]

Can revenue be invoiced based instead of "money into my bank account"?

That's something accountants fall back on when you don't have proper book keeping records or they are taking short cuts. So yes that is possible. It's wrong, but very possible.

 

[Tallboy]

Revenue is, in our case, invoice based. Unfortunately outstanding accounts are quite high. So in layman's terms we paid taxes on money we haven't received yet. This kind of sucks since we converted for a sole prop which was payment based.

 

[GrootBaas]

I presume that all the comments pertaining to VAT only apply if you are a VAT enterprise? If you can't claim input tax, then presumably VAT is just an expense?

Yes. But again revenue will not include VAT as you won't raise any output VAT.