SARS miscalculation of VAT

[GrootBaas]

Just saw that the new SARS VAT201 forms (of now Vendor Declaration) miscalculates the output VAT when you insert your sales. Not a huge amount, but on my one client it was about R5, someone I know had something like a R70 difference. (And these are very small entities).

Each time the VAT payable is less than what it should be - really wonder what the total cumulative amount for this error would be, I have no idea.

Haven't tried to figure out how the mistake is made, probably a rounding issue.

 

[BloemGuy]

No, it's not a miscalculation

Just saw that the new SARS VAT201 forms (of now Vendor Declaration) miscalculates the output VAT when you insert your sales. Not a huge amount, but on my one client it was about R5, someone I know had something like a R70 difference. (And these are very small entities).

Each time the VAT payable is less than what it should be - really wonder what the total cumulative amount for this error would be, I have no idea.

Haven't tried to figure out how the mistake is made, probably a rounding issue.

No, it's no mistake but indeed a rounding issue. The new VAT201 form has been made compliant with Sec 66 of the VAT Act which states that when the tax fraction is used, you should no longer use 14/114 = 0.1228070175438596 but that figure rounded to the 5th decimal. You should thus use the Rand amount of your turnover x 0.12280 or 12.280% to get the amount.

 

[GrootBaas]

No, it's no mistake but indeed a rounding issue. The new VAT201 form has been made compliant with Sec 66 of the VAT Act which states that when the tax fraction is used, you should no longer use 14/114 = 0.1228070175438596 but that figure rounded to the 5th decimal. You should thus use the Rand amount of your turnover x 0.12280 or 12.280% to get the amount.

Wow okay, thanks.