- South African Revenue Service (SARS) has clarified the VAT treatment of cash round-offs in a new ruling.
- Suppliers are not required to issue credit notes in rounded-off cash transactions.
- Suppliers must indicate on the invoice that the recipient can only claim input tax to the adjusted amount.
- Suppliers must retain relevant records to support the adjustment.
- Recipient vendors can use the tax invoice for input tax deduction, but it is limited to the adjustment amount for the cash transaction.
- Recipients must do a reasonable split for deducting input tax on goods or services with different tax rates.
- Both suppliers and recipients must comply with the documentary requirements in the VAT Act.
Source: insightplus.bakermckenzie.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
