Posts tagged [VAT]

  • VAT Rate Increase - 1 April 2018

    South Africa will see its first VAT rate increase for the first time in 25 years on 1 April 2018.

    The effective VAT rate will rise from 14% to 15%.

    Regardless to say, an increased VAT rate necessitates a change in your current accounting system.  As per the linked documents (below), this is not a simple change as there are timing & default settings to take into account, such as forced tax types, recurring batches & tax box report changes.

    As a Sage Pastel Cover client, Sage Pastel are currently developing a build upgrade for Versions V14, V17 & V18, to make the change-over easier.

    Expected release dates for these build updates:

    16 March 2018 - V18 Upgrade will be available

    23 March 2018 - V17 and V14 Upgrades will be available


    Should you wish to upgrade & need consultant assistance prior to 1 April 2018, advanced bookings are essential.  There is no cost for the software, if you are a cover client but there will however be a charge for the consulting time.  Please contact our offices timeously for a quotation or to book an appointment. 


    Kindly Note:

    All PC's must be on either Windows 7 or 10 and Server 2008R or higher with all windows updates installed for V18 Pastel packages to function optimally.


    Your current Pastel version can be modified manually following the instruction document supplied herewith.

    Click here to download your Manual Instruction Procedure (Non Cover Clients & Versions Older than V14)

    Click here to download your SARS VAT Change-over Frequently Asked Questions

    Click here to download your SARS VAT Change-over Pocket Guide

    Click here to download your Pastel VAT Change-over Checklist

     Wishing you all a very successful switch-over to 15% VAT!

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  • Input VAT – Simple Basic Rules

    Input VAT – Simple Basic Rules

    Did you know that you have 5 years in which to claim Input Vat?

    However, Input Tax may not be deducted / claimed from:

    • Goods or services acquired for purposes of entertainment i.e. business lunches; golf days; sporting events; membership fees
    • Interest
    • Fuel
    • Staff Welfare expenses i.e. year-end lunches & parties; venue hire for these functions ; teas & coffees provided to staff
    • Transport costs i.e. bus; taxi; train
    • Hiring & purchase of a motor car (see below definition of term “motor car”)
    • Municipal Rates
    • Private expenses allocated to loan accounts
    • Medical Aid Schemes or Benefit Funds

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  • VAT Requirements For Tax Invoice - Back To Basics

    Monthly we are finding that when assisting clients on Sage Pastel Accounting with submitting their Vat returns to SARS, more and more clients are being asked to upload their VAT details to SARS E-filing for auditing.

    Many of the records we receive are not according to the SARS requirements. 

    My suggestion is that if your suppliers are not providing the correct Tax invoices, do not process payment until they have complied with legislation as once payment has been made, many suppliers are not interested in assisting when SARS has disallowed the vat claim.

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