How to Calculate VAT Returns Quickly, Accurately & Easily
As your business grows (and your taxable supply reaches 1000,000), you’ll need to register for VAT. This means that you’ll be able to recover the VAT you pay on business purchases and also charge VAT on your sales.
When it comes to how to calculate VAT returns, unless you’re in a flat rate scheme, you’ll work out VAT by comparing the amount you paid on purchases to the amount you collected on sales.
Calculate VAT With This Equation :
VAT Collecte - VAT Paid = VAT payment
Note the VAT paid on your business purchases
- Note the VAT you’ve collected on sales
If you get a positive number, you need to pay that amount to SARS. If it’s a negative number, you’ll get refunded for that amount. Here’s the equation (it’s pretty straightforward)