Is it compulsory for a business to register for VAT? What is the procedure? Our tax practitioners are here to assist you with answers on questions such as when, why and how to register, and how to achieve savings.
Five things you may not have known about VAT:
- Value Added Tax (VAT) replaced General Sales Tax (GST) in South Africa on 29 September 1991.
- It is a form of indirect taxation.
- It was originally set at a rate of 10 per cent, but the rate increased to 14 per cent in 1993 ever since remained at 14 per cent.
- VAT registration is compulsory for any business with a turnover of more than R1 million in a 12-month turnover period.
- Voluntary VAT registration is possible for any business with a proven turnover of more than R50 000 in the past 12 months of its operation.
VAT registration is done through the completion of VAT 101 form that you must submit in person to the SARS branch closest to your business. However, if you make use of a SARS registered tax practitioner, the specialist can do so on your behalf. SARS does not accept photocopied or faxed VAT registration applications. The only time that SARS will process a posted application is if the applicant has a disability or is stationed far from a SARS branch. The registration will not be completed until all the required supporting documents are submitted.
Various aspects must be taken into consideration when deciding to register for VAT, such as whether the business is operated from your house, whether you deal with export products, and more.
Benefit from the convenience of professional tax practitioners completing and submitting your company’s VAT registration. Make use of our affordable and efficient service offering and take advantage of our expertise in helping simplify your monthly VAT processes.