by Mike Perk on 13/05/12 at 10:28 pm
New to VAT? This book is a perfect “Dummies guide” to the VAT system in South Africa. Whether you are a financial novice or experienced bookkeeper it is worthwhile having a copy of this on your desk.
“The VAT Handbook”, by Geoff Hull and Clive Gibson, starts by explaining the administration side of VAT; how to register, record-keeping, calculating VAT, and what is a valid tax invoice. The text book style makes this a perfect reference book when you need a quick re-cap on a particular VAT area.
The most useful section of the book is the Input VAT chapter i.e. the VAT you can claim back. They have included extensive lists of products and services, along with examples and further explanations on areas where people are likely to incorrectly record the VAT, such as company vehicles and Entertainment.
Throughout the book when the topic becomes complex the authors have used easy to follow monetary examples, which clearly highlight how the VAT calculation works. For example if you supply both Zero rate and Vatable supplies – how much VAT can you claim back?
Essential for business folk and students
This is an essential guide if you are VAT registered or a business student. Instead of spending hours trying to find all this information on the SARS website and then having to translate the VAT Act into layman’s terms, both Geoff Hull and Clive Gibson have done this for you.
I would recommend that SARS offer this book to all newly registered traders / companies, by reading this book before completing their first VAT return, SARS I believe will easily save more than the cost of the book in ensuring the correct claiming of Input VAT.
Features I would love to see in the next revision:
– How to fill out the VAT Return
– Advantages and disadvantages of being VAT Registered if you are under the compulsory turnover limit.
– a student volume where all sections of the VAT Act are covered in detail.
All in all, Ideate readers running their own businesses and wanting to learn about the complexities of South African tax should read this. Buy the book here, and let us know what you think.
Mike is an entrepreneur and managing director of digital marketing agency World Wide Creative. A video blogger for his three favourite subjects: Entrepreneurship (www.ideate.co.za), Web Marketing (www.heavychef.com) and Football (www.free-kick.tv). Follow Mike on Twitter: www.twitter.com/mikeperk View more articles by Mike Perk.