Please note: you must ensure that the invoices on sales and purchases comply with the VAT act; refer to the SARS website for further information.
What is VAT?
VAT is a tax levied on the supply of services and goods.
It is important is to remember that you are appointed as an agent on behalf of SARS to collect the VAT and pay the VAT over to SARS, so if a client pays money into your account the 15% VAT doesn't belong to you and you are not entitled to use it, so you need to be careful to keep that VAT separate as you will be required to pay the VAT over to SARS on your VAT return.
