How to Use the New VAT Tools in payPod

Important note

Audience: non-accountants using payPod
Goal: just enough VAT context + exactly which tax codes to pick + how your VAT201 is filled

payPod’s new VAT system gives you everything you need to stay compliant with SARS and generate accurate VAT201 reports based on the accrual method.

This guide walks you through how to use the new VAT tools, from setting up tax codes to generating your VAT return.

VAT basics (quick + practical)

Before you pick a tax code, here’s what each VAT type means and what you do in payPod. (South Africa, 15% standard rate.)

Standard rate (15%)
Most local sales/services.
In payPod: use Standard Rate Sales (15%) or Standard Rate Sales – Capital (15%).
On VAT201: Fields 1/1A (VAT-inclusive totals) and 4/4A (VAT).
Zero-rated (0%) (still taxable, but at 0%)
Two big buckets: exports and some specific local items.
In payPod:
• Exports → Zero Rate – Exports (0%) → Field 2A
• Local zero-rated → Zero-rated (0%) → Field 2
Input VAT: usually claimable if the purchase relates to taxable supplies.
Exempt (0%) (not taxable)
Think interest and certain financial services.
In payPod: Exempt Income (0%) → Field 3.
Input VAT: generally not claimable.
Imported services (reverse charge)
You self-charge VAT (output) and usually claim the same VAT as input.
In payPod (bills): Imported Services (15%) → Field 12 (output VAT, shows as a minus on bills) and Field 15 (input VAT).
Imported goods (through customs)
Supplier line shows value at 0%; the customs VAT is claimed from the SAD 500.
In payPod:
• Use Imported Goods – Capital (0%) → Field 14A (value)
• Use Imported Goods – Other (0%) → Field 15A (value)
• Post the customs VAT via a separate bill using Capital Goods (15%) (→ Field 14) or Other Purchases (15%) (→ Field 15).
Accommodation
Special rule for stays > 28 days.
In payPod: choose ≤28 days or >28 days; we auto-fill Fields 5–9.
Bad debt (accrual)
When a customer won’t pay, you can reclaim the VAT.
In payPod: issue a credit note coded Bad Debt → Field 17 (input claim).

3) Managing tax codes

Path: Accounting → Reports → VAT / Sales Tax → Tax Codes Tab

View codes, rates, and which VAT201 field each feeds
Only make changes if you really know what you are doing; when in doubt, keep defaults

Edit a code (rare):

Click Edit
Adjust Name/Rate (e.g., if law changes)
Save

You generally won’t create new tax codes; payPod ships with the correct ones.

4) Invoices (Sales)

Path: Invoicing → Invoices → Create Invoice
Pick the correct tax code per line:

Normal SA sales → Standard Rate Sales (15%)
Selling a fixed asset → Standard Rate Sales – Capital (15%)
Exports → Zero Rate – Exports (0%)
Exempt income → Exempt Income (0%)
Accommodation → pick ≤28 days or >28 days

5) Bills (Purchases)

Path: Accounting → Bills → Create New Bill

Capital Goods (15%) → Field 14
Other Purchases (15%) → Field 15
Imported Services (15%) → Field 12 (output, negative on bills) and Field 15 (input)
Imported Goods – Capital (0%) → Field 14A (value)
Imported Goods – Other (0%) → Field 15A (value)
Change in Use → Field 16

Customs VAT (SAD 500) is claimed via a separate bill using Capital Goods (15%) or Other Purchases (15%) so it lands in Field 14/15.

6) Credit notes (returns, discounts, bad debt)

Path: Credit Notes → Create New Credit Note

Returns/discounts: use the same tax code as the original line; payPod reverses it
Bad debt (accrual): create a credit note for the unpaid amount and pick Bad Debt; payPod posts VAT to Field 17 as a positive claim (correct for VAT)

7) VAT201 in payPod — what goes where

Output (sales side)

Field 1: Standard-rated sales (VAT-inclusive), excluding capital & accommodation
Field 1A: Standard-rated capital sales (VAT-inclusive)
Field 2: Zero-rated (local) sales
Field 2A: Zero-rated exports
Field 3: Exempt income
Fields 5–9: Accommodation (payPod computes 60% and 15%)
Field 10: Second-hand goods (deemed value, special cases)
Field 11: Notional VAT (15% of Field 10)
Field 12: Imported services VAT (reverse charge; bills show a minus)
Field 13: Total output VAT = 4 + 4A + 9 + 11 + 12

Input (purchases side)

Field 14: Input VAT on local capital purchases
Field 14A: Value of imported capital goods (0%)
Field 15: Input VAT on local non-capital purchases (also the claim side of imported services)
Field 15A: Value of imported non-capital goods (0%)
Field 16: Change in use (input adjustment VAT)
Field 17: Bad debts (input claim VAT)
Field 18: Other input VAT (rare/legacy; usually 0)
Field 19: Total input VAT = 14 + 14A + 15 + 15A + 16 + 17 + 18
Field 20: Net VAT = Field 13 − Field 19 (payable or refundable)

8) Cheatsheet — “Which code do I use?”

Selling in SA? → Standard Rate Sales (15%)
Selling a fixed asset? → Standard Rate Sales – Capital (15%)
Exporting goods? → Zero Rate – Exports (0%)
Earning interest? → Exempt Income (0%)
Accommodation? → ≤28 days or >28 days
Buying locally (normal costs)? → Other Purchases (15%)
Buying locally (capital)? → Capital Goods (15%)
Paying a foreign service? → Imported Services (15%)
Bringing goods through customs? → Imported Goods – Capital/Other (0%), plus a separate bill for customs VAT at 15%
Customer won’t pay? → Credit note with Bad Debt

9) “Is this normal?”

Field 12 shows a minus on bills → yes (reverse-charge output VAT); you also see the same VAT positive in Field 15
Field 14A/15A are 0% → they hold values, not VAT; claim customs VAT via a separate bill
Field 1/1A look high → they’re VAT-inclusive totals (required by SARS/Xero)

10) Filing checklist

Correct tax codes on every line?
Exports use the Exports (0%) code (and you have proof)?
Imported goods: captured values (14A/15A) and a separate bill for customs VAT?
Any bad debts: credit note with Bad Debt code?
Run Reports → VAT201 and sanity-check totals (Fields 13, 19, 20).

11) Need help?

Tax law nuance? Ask your accountant
App question? Contact payPod support with the document number (invoice/bill/credit note) and a screenshot of Reports → VAT201