What You Need to Know about VAT Registrations
According to the South African Revenue Services (SARS), businesses that earn an income of one million rand or more in a 12-month period (or if it is likely to earn as much) must register for VAT (Value-Added Tax). VAT was introduced in South African in September 1991 and was initially set at a rate of 10%. Today, VAT is set at 14% and is considered a broad tax that has to be charged on services and goods, whether those goods are capital goods or trading stock.
A business can voluntarily register if the enterprise has an income of more than R50 000 per year. In some cases, where a small business is registered under the Sixth Schedule of the Income Tax Act as a micro business, the business can register for VAT and submit returns and payments every four weeks. In order to apply to become a VAT vendor, a VAT 101 form must be correctly completed and submitted to a SARS office. It is important to note that you will need to visit the SARS office in person to apply; alternatively, the application can be handled on your behalf by a registered tax consultant.
Since May 2014, the tax management system has changed. Registrations were, up until that point, treated separately. Now company owners can view all of their tax registrations on one account. This means that you can have a complete overview of all of your VAT, PAYE, Income Tax, and more, in one place. Many people make use of SARS eFiling, but this system can sometimes be tricky to understand if you have never used it before or if you have no knowledge of how tax and VAT works. Our tax consultants at Tax Leaders can simplify things for you and help you with any registrations and submissions required. You will not have to worry about confusion or mistakes along the way.
We have a professional team of experienced tax consultants and all of them are familiar with VAT and how it works within the framework of the law. We can ensure compliance for you and your business and ensure that you are not presented with any unnecessary complications along the way. We welcome you to get in touch with us via email or telephone to discuss your needs and requirements and to gather information on what is expected from you. You can also reach us on Facebook, Twitter, Google+, or LinkedIn, if these social media platforms suit you better.