When you submit your tax return and receive an assessment (ITA34), you may also receive a letter from SARS asking you to provide supporting documents.
To check if you have been selected for verification, review your ITA34. Look for the “Compliance Information” section, which indicates whether you have been selected for audit or verification with a “Y” (Yes) or “N” (No). If you see an “N,” you can breathe a sigh of relief—SARS likely doesn’t need anything further from you this tax year. However, if there is a “Y,” it means SARS requires evidence or documentation to back up the amounts reported on your tax return. Unfortunately, this is becoming more common. This is why we think you should always put your tax documents together before the tax season starts.
From our experience, SARS can request a wide range of documents. The best way to prepare is to review your tax return thoroughly and ensure you have supporting documents for each item reported. The SARS letter will usually specify the documents needed, so read it carefully and make sure you provide everything requested.
To simplify the process and ensure you’re well-prepared, we’ve put together a table that outlines the most common expenses and the specific supporting documents SARS might request, tailored to the type of taxpayer you are:
| Expense | Salaried Employee | Commission Earner (more than 50% of income from commissions) | Sole Proprietor / Freelancer / Independent Contractor |
|---|---|---|---|
| Depreciation on Business Assets (e.g., laptop) | – Letter from employer stating you can use a personal laptop for work – Proof of purchase (invoice) – Calculation of wear and tear | – Letter from employer stating you can use a personal laptop for work – Proof of purchase (invoice) – Calculation of wear and tear | – Proof of purchase (invoice) – Calculation showing how wear and tear was calculated and apportioned between business and personal use |
| Medical Costs | – Medical Aid Tax Certificate – Invoices from doctor/pharmacy and receipts (POPs) for qualifying expenses not submitted to Medical Aid | – Medical Aid Tax Certificate – Invoices from doctor/pharmacy and receipts (POPs) for qualifying expenses not submitted to Medical Aid | – Medical Aid Tax Certificate – Invoices from doctor/pharmacy and receipts (POPs) for qualifying expenses not submitted to Medical Aid |
| Uber Costs | – Cannot claim | – Uber receipt (email) | – Uber receipt (email) |
| Home Office | – Letter from employer stating you can work from home and % time spent there – Calculation showing apportionment – Supporting invoices | – Letter from employer stating you can work from home and % time spent there – Calculation showing apportionment – Supporting invoices | – Calculation showing apportionment – Actual invoices supporting claim (electricity, water, rates, bond statement, rental invoice, etc.) |
| Bank Charges | – Cannot claim | – Bank statement reflecting bank charges for your business account | – Bank statement reflecting bank charges for your business account |
| Entertainment | – Cannot claim | – Schedule of entertainment expenses detailing names of attendees, the purpose of the meeting, etc. – Restaurant invoices/receipts | – Schedule of entertainment expenses detailing names of attendees, the purpose of the meeting, etc. – Restaurant invoices/receipts |
| Travel | – Logbook with details of business mileage – Vehicle purchase invoice (if applicable) – Fuel, maintenance, license, and insurance invoices (if actual costs are claimed) | – Logbook with details of business mileage – Vehicle purchase invoice (if applicable) – Fuel, maintenance, license, insurance invoices | – Logbook with details of business mileage – Vehicle purchase invoice (if applicable) – Fuel, maintenance, license, insurance invoices |
| Telephone | – Cannot claim | – Sample of actual monthly invoices – Calculation showing how total expenses were apportioned between business and personal use | – Sample of actual monthly invoices – Calculation showing how total expenses were apportioned between business and personal use |
Key reminders:
SARS does not accept schedules or lists of expenses on their own—you must provide scanned copies of the actual invoices or receipts. Make sure that your supporting documents match the total expenses you’ve claimed on your tax return. Submit all calculations, ensuring they are clear, detailed, and easy for SARS to understand during their review
Ready to make tax season stress-free? Let us help you get your documents in order and avoid costly mistakes. Contact us today and get expert guidance on all your tax needs—because your peace of mind is priceless!