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Input VAT vs Output VAT: What’s the Difference?
Quick Answer Input VAT vs Output VAT: What’s the Difference? Output VAT is the 15% you charge customers when you sell. Input VAT is the 15% you pay suppliers on business purchases. On each VAT201 you pay SARS the difference: output tax minus input tax. You can only claim input VAT with a valid tax invoice. The two sides of VAT in one table Input VAT Output VAT What it is VAT you PAY on purchases VAT you CHARGE on sales Example 15% on stock, rent, equipment 15% added to your invoice total Where it appears VAT201 purchases block VAT201 supplies block Effect Reduces what you owe SARS Increases what…
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What Is VAT201 and How Do You Submit It?
Quick Answer What Is VAT201 and How Do You Submit It? The VAT201 is the SARS return every VAT vendor files to declare output tax collected minus input tax claimed. Most vendors file every two months via eFiling: declare your sales and purchases, pay the difference (or claim a refund), and keep your records for five years. What this means in plain language Think of VAT201 as the form that settles your account with SARS every second month. You owe SARS the output tax you charged customers; SARS owes you the input tax you paid suppliers. The VAT201 nets the two out. Your filing category (A, B, C, D or…
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