VAT Query

[Candystore]

I invoiced someone last year at the old rate of VAT, i.e. 14%. The invoice was only paid now. I have to pay over the VAT to SARS, but obviously when I enter the invoice amount, eFiling automatically calculates the VAT owing as 15%, instead of the old 14%.

How can I overcome that ?

 

[Purply]

Surely if the invoice was made out last year, it should have been captured last year?

Slightly confused about how accounting works.

 

[Paul Bedford]

Unless you have permission from SARS to account for VAT on the payments basis, you should account for VAT on the invoice basis. If you have permission from SARS, ask them how to do it. If you haven't, pay the VAT at 15%.

 

[Candystore]

Thanks !

 

[Candystore]

May I also please ask for help with the calculation of the penalty and interest for late payment?

As an example: the late VAT amount I owe is R5 000. I had to pay on 25 July, so almost one month late. I know, I know!!

Does that make the penalty then 10%, i.e. R500?

And how do I calculate the interest?