Key Takeaways

• VAT refund mistakes can lead to penalties, delays, or rejected claims.
  
• MyVAT helps businesses avoid common errors in VAT submissions.
  
• Proper documentation, timelines, and expense classification are critical.
  
• Working with professionals like MyVAT improves accuracy and speeds up refunds.
  
• Avoiding mistakes protects cash flow and simplifies SARS compliance.
  

Why Getting VAT Right Matters

When it comes to VAT refunds, small missteps can lead to big problems. Whether it’s submitting late, misclassifying expenses, or failing to back up your claim, the impact is always the same: delayed or lost refunds—and sometimes SARS penalties.

That’s why businesses trust MyVAT, a team that specialises in navigating the refund maze with skill, speed, and accuracy. Knowing the common VAT refund mistakes is step one. Avoiding them with expert help? That’s where the real value kicks in.

Mistake 1: Claiming VAT on Non-Qualifying Expenses

Not every business purchase qualifies for a VAT refund. Claiming on personal or exempt items is one of the fastest ways to raise red flags with SARS.

Common Non-Qualifying Expenses Include:

• Personal entertainment or non-business meals
  
• Passenger vehicles not used exclusively for business
  
• Gifts without clear business relevance
  
• Salaries or wages
  
• Certain imported services without proper documentation
  

MyVAT reviews your claims line-by-line to make sure you’re only submitting eligible costs—keeping you compliant and maximizing your refund.

Mistake 2: Using Incorrect or Incomplete Tax Invoices

A VAT claim is only valid if supported by a proper tax invoice. A missing vendor registration number, incorrect business name, or total-only invoice could cost you your refund.

A Valid Tax Invoice Must Include:

• The words “Tax Invoice” clearly displayed
  
• The supplier’s VAT registration number
  
• Your business name and VAT number
  
• A full breakdown of VAT and net amounts
  
• Date of issue and detailed description of goods or services
  

MyVAT helps clients identify invalid invoices and guides vendors on issuing compliant ones. Don’t lose money because of someone else’s formatting mistake.

Mistake 3: Submitting Late VAT Claims

VAT must be claimed within five years of the tax period in which it was incurred—but waiting too long can lead to administrative issues or overlooked documents.

Late submissions often mean:

• Lost receipts or incomplete records
  
• VAT input being disallowed in the wrong period
  
• Increased SARS scrutiny
  

MyVAT keeps your claim calendar up to date, helping you submit on time, every time—without last-minute stress.

Mistake 4: Mixing Personal and Business Expenses

When your personal and business expenses share the same account or credit card, mistakes happen. Even if the purchase is legitimate, lack of clear separation weakens your claim.

Examples That Create Confusion:

• Buying groceries and office supplies in one transaction
  
• Using a personal vehicle for business travel without logging mileage
  
• Submitting fuel receipts not tied to business use
  

MyVAT advises on best practices for clean expense records and ensures only business-qualifying entries are claimed. That way, SARS gets exactly what they expect—and nothing they don’t.

Mistake 5: Poor Record-Keeping

You can’t claim what you can’t prove. Sloppy or inconsistent bookkeeping is one of the top reasons small businesses lose out on VAT refunds.

Avoid These Record-Keeping Pitfalls:

• Failing to store digital copies of receipts and invoices
  
• Missing payment confirmations
  
• Not reconciling supplier statements with VAT periods
  
• Manual logs instead of cloud-based tracking
  

MyVAT works with digital systems that store and categorise all your VAT records securely—making audits smoother and refunds faster.

Mistake 6: Failing to Understand SARS Requirements

VAT legislation changes often. A lack of awareness around updates or interpretation errors can tank your refund—even if the expense is legit.

Examples Include:

• Over-claiming on fringe benefits
  
• Using old VAT codes or rates
  
• Incorrect treatment of imported services
  
• Misalignment between invoice date and tax period
  

The MyVAT team stays on top of SARS changes so you don’t have to. Their expertise turns guesswork into accurate, legally sound claims.

Mistake 7: Ignoring Foreign VAT Recovery Opportunities

If you’re doing business across borders, you may be leaving thousands on the table by ignoring foreign VAT opportunities.

You May Be Eligible to Claim On:

• EU business travel costs (hotels, car hire, event registration)
  
• Cross-border supply chain purchases
  
• International trade show fees
  

MyVAT handles foreign VAT recovery for eligible businesses, navigating different jurisdictions so your team doesn’t have to. What seems complicated becomes a smart refund channel.

Mistake 8: Not Using a Specialist

General accountants or bookkeepers may not specialise in VAT refunds—and even if they do, they’re juggling multiple duties. That leaves room for error.

Why a VAT Specialist Like MyVAT Makes a Difference:

• Focuses only on VAT compliance and recovery
  
• Tracks every SARS update in real time
  
• Uses dedicated systems to flag errors and missed claims
  
• Knows what documentation to prepare before SARS even asks
  
• Has direct experience resolving disputes and following up on delayed refunds
  

Letting MyVAT handle your claims removes the guesswork and stress from your tax cycle.

Mistake 9: Not Reconciling Output and Input VAT

When your sales VAT (output) and purchase VAT (input) don’t line up properly in your return, it creates inconsistencies. This raises SARS’ eyebrows and delays your refund.

Causes Include:

• Duplicated entries
  
• Posting in incorrect periods
  
• Currency mismatches on imports
  
• Reverse charge errors on foreign services
  

MyVAT runs a full reconciliation before every claim submission, ensuring all entries align and there’s no drama come SARS review time.

Bullet Summary: What to Avoid When Claiming VAT

• ❌ Submitting claims on non-qualifying expenses
  
• ❌ Using invoices missing VAT numbers or line items
  
• ❌ Delaying submission beyond the allowed period
  
• ❌ Blending personal and business costs
  
• ❌ Ignoring cross-border opportunities
  
• ❌ Using generalists instead of VAT specialists
  
• ❌ Misaligning claim periods with transaction dates
  
• ❌ Failing to archive digital documents
  
• ❌ Skipping proper input/output reconciliation
  
• ❌ Not staying informed about regulatory changes
  

Each of these errors can cost you money—or worse, trigger an audit. MyVAT exists to ensure none of them make it into your next refund.