CPM Customers, kindly note: We have received correspondence from SARS regarding Domestic Reverse Charges and would like to share this with you:
The DRC does not require the VAT amount to be reflected on the tax invoice issued by the Supplier. It merely states that the Supplier may not charge the VAT to the recipient.
The DRC however also does not prohibit the Supplier from reflecting the VAT amount somewhere on the tax invoice should they so wish, just as long as it is not charged to the recipient
Regulation 3(e) of the DRC Regulations requires the recipient to issue a statement to the vendor within 21 days of the end of the month during which the VAT has been paid and accounted for as required in regulation 3(c). Regulation 3(c), in turn, requires the recipient to account and pay the VAT to SARS in the tax period in which the tax invoice is held by the recipient.
So for example, August transactions must be declared in the August VAT return which is submitted to SARS end September. The statement must be sent 21 days after submission of the return and payment of VAT to SARS, being 21 October.
Please note that all queries regarding the DRC legislation, as well as statements, can be sent to drcstatements@cpmct.co.za, for the attention of Shani Schreuder.
For more information on DRC VAT, please see our previous article.
