Fact Sheet issued for the Classification of VAT

The Secretariat developed a Fact Sheet on the Classification of VAT as it was noted from its GRAP 104 Reference Group, that there were divergent practices by entities.

The Fact Sheet covers:

• Whether VAT due to/from SARS is a Financial Instrument or a Statutory Receivable/Payable.
• Off-setting and the Presentation of VAT in financial statements.
• The difference in accounting, along with proposed journals, for VAT vendors on either the invoice basis or the payment basis.

To Fact Sheet is available on our website.

The Fact Sheet and the FAQs issued by the Secretariat are helpful resource materials to consider when accounting for VAT.