Budget tips to survive the vat hike

An Increase in VAT means that ultimately, more money will go towards running costs. “A 52 cents per litre increase in fuel tax will lead to higher transport costs which consequently also increases the cost of input supplies which then negatively affects the profit margins of most grains and ultimately, farming profitability”. Said Pieter Swart: Managing Executive at Senwes. Swart has tips on how farmers can adjust to the VAT hike.

  • Make sure your bookkeeping system is in order
  • Make sure that you are registered for VAT
  • Keep all invoices and ensure that you or your bookkeeper claims the applicable VAT. Also ensure that all invoices adhere to the VAT regulations.
  • Keep a good record system and ensure that your claims are done correctly. (SimiFini is a recommended bookkeeping system for farmers).

For any advice, do not hesitate to call Senwes Credit on 0184647800.