You probably know by now that from 1 March 2011, the monthly income tax fringe benefit on the private use of a company car has been increased from 2,5% of the Vat-exclusive price to 3, 5% of the Vat-inclusive price.

Traditionally, 1 April is set aside for April Fool’s jokes. This time it will also coincide with the date when the new Companies Act will come into effect - and this is no joke. Directors of companies will become substantially more exposed to be held liable in their personal capacity.

One of our subscribers contacted me in a panic. On Monday, she received a demand from SARS to pay R375,000 within 48 hours!

Let’s be honest, in 20 years of working with Vat, I’ve came to the conclusion, that it has never been easy to get a new Vat number from SARS!

Vat Loose Leaf subscribers regularly contact the Practical Vat Loose Leaf’s Helpdesk guru to help them sort out payment and refund problems with SARS. Here are five common and dangerous Vat scenarios that subscribers find themselves in. And some tips for avoiding them!

Vat Law tells us that if you rent accommodation as a residence, then your entire activity is exempt from Vat.