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Can I save invoices for SARS record keeping by scanning them in?
Can I save invoices for SARS record keeping by scanning them in?
As per the heading, can I save invoices for SARS record keeping by scanning them in?
Expense invoices, suppliers invoices etc sscanned as a high res jpeg, will SARS accept that, make life a lot easier
I found this helpful information on MD Accountants and Auditors website.
Tax Administration Act:
Records are kept in the original form, in an orderly fashion, and in a safe place, or, where retained in electronic form, in an “acceptable electronic form”, or in a form specifically authorised by a senior SARS official.
This “acceptable electronic form” must ensure that the information has remained complete and unaltered and is capable of being displayed or produced to the person who is inspecting the record.
It is required that the person required to keep records is able to, within a reasonable period when called on by SARS, to provide SARS with an electronic copy of the records, in a format that SARS is able to readily access, read and analyse, or to send the records to SARS in an electronic form that is readily accessible by SARS, or to provide SARS with a paper copy of those records.
Taxpayers who keep records in an electronic format must ensure that measures are taken for the adequate storage of the electronic records. It is necessary to store all electronic signatures, login codes, keys, passwords or certificates required to access the electronic records, and the procedures to obtain full access to any electronic records that are encrypted.
Taxpayers who retain electronic records must have the records available for inspection by SARS at all reasonable times, and at premises physically located within the country, or accessible from such premises (if authority has been granted by SARS). The electronic records must be able to be made available for purposes of an audit or investigation conducted by SARS.
Electronic Communications and Transactions Act:
Where a law requires information to be retained, that requirement is met by retaining such information in in the format in which it was generated, sent or received, or in a format which can be demonstrated to represent accurately the information generated, sent or received.
The origin and destination of that data message and the date and time it was sent or received can be determined.
No act of kindness, no matter how small, is ever wasted. - Aesop "The Lion and the Mouse"
And what about these heat sensitive invoices that fade to nothing after a yr or 2?
SARS does seem to imply you can have scans for record purposes, in the Us I know you can and paperless document management is pretty big stuff. Many apps avail for it and mainly focused on recording invoices for tax purposes.
Well Mike C's post above seems to contradict that, doesn't it?
In any event, the requirement of keeping an "original" paper invoice for example is becoming silly. What difference does it make if the supplier prints out an invoice on their computer and then posts it to me, or if he emails the document to me and I print it out on my printer next to me?
In my experience SARS only have an issue if they suspect tax fraud. Audits are now mostly done electronically and electronic copies of invoices are readily accepted by them.
If you store them in pdf format from Acrobat (there may be others) you can really fine tune the security settings to prevent tampering, even printing for that matter.
The presumption is always that you have archived the hard copies.
Where a law requires information to be retained, that requirement is met by retaining such information in in the format in which it was generated, sent or received, or in a format which can be demonstrated to represent accurately the information generated, sent or received.
Busfact I think this is exactly what I said, not a contradiction.
But anyway - if u think u can lose original receipts etc and only keep a scanned copy - go for it.
Perhaps this extract from the South African Institue of Tax Professionals will make it a bit clearer.
With the introduction of the Tax Administration Act (TAA), specific rules have now been introduced in relation to electronic record-keeping.
In terms of section 30(1)(b) of the TAA, records may be kept in electronic form as prescribed in the schedule attached to Government Gazette Number 35733 of 1 October 2012.
A person is allowed to keep records in electronic format if it is retained in an ‘acceptable electronic form'. Records would be in an acceptable electronic form if the information remains complete and unaltered except for any changes which arise in the normal course of communication, storage and display (i.e. the integrity of the records complies with the standard contained in section 14 of the Electronic Communications & Transactions Act).
It is required that records are kept and maintained at a place physically located in South Africa. However, SARS may also authorise that the records are maintained at a physical location other than South Africa in limited circumstances, such as where electronic access to the records is possible from the person’s physical address in South Africa for the duration of the period that the person is required to keep and retain the records and where an international tax agreement with the country of location exists for reciprocal assistance in the administration of taxes.
There are also requirements for additional documents to be retained where computer software or electronic platforms are altered or adapted for the person’s specific requirements.
Finally, adequate storage and back-up of the electronic records should be ensured, including the storage of the media on which electronic records are stored, the storage of all electronic signatures, etc. Electronic records, log-in codes, keys, passwords and certificates to allow access, should therefore be readily available when SARS wishes to perform a tax audit and/or to inspect the system.
All other obligations as prescribed in the TAA and Tax Acts in relation to a person’s duty to keep records also applies to records in electronic format, as well as the prescribed periods of retention.
We would recommend that professional advice is obtained to ensure that all the requirements are met where records are kept in electronic format and where necessary approval is obtained from SARS.
No act of kindness, no matter how small, is ever wasted. - Aesop "The Lion and the Mouse"
For how long are these records to be kept whether in hard or soft copy
Document Retention period for Income tax - generally 5 years from the time of submission or the end of the relevant tax year.
Documents relating to where objection and appeal is lodged ... Until appeal/objection is final
The documents relating to VAT shall be kept in either a book form for a period of 5 years after the completion of the last entry in the book
or
in another form (electronic) for a period of 5 years after the completion of the last transactions to which they relate.
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