Understanding VAT Registrations
As a business, there is nothing more exciting as when your business performs well and you see your turnover gradually increase. But, one thing you need to be cognisant of is that as you make more money, you will be liable for VAT Registrations.
Who Needs To Register for Vat?
If you run a business that has a sales turnover exceeding R 1 000 000 in a 12 month period, then you are required to register as a VAT vendor. However, you must be registered first for income tax before you can register for VAT. Furthermore, should your turnover be less than R1 million it may still be beneficial to perform a voluntary Vat registration as you can claim VAT back from supplier purchases and this is then deducted from the VAT you owe SARS. If your turnover is less than R50 000 per annum, you will unfortunately not be able to register as a VAT vendor.
VAT is presently levied at the standard rate of 15% on most supplies and importations, but there is a limited range of goods and services which are either exempt, or which are subject to tax at the zero rate (for example, exports are taxed at 0%).The South African VAT is destination based, which means that only the consumption of goods and services in South Africa is taxed. VAT is therefore paid ONLY on the supply of goods or services in South Africa as well as on the importation of goods into South Africa.
How to Register for VAT?
You can either elect to register your business as a VAT vendor yourself or you can make use of an accounting and tax company to handle the whole process for you. It is worth noting that VAT registrations will take more administration time and you will be required to submit VAT payments to SARS according to the VAT cycle you are allocated. You will also be required to keep records according to the requirements SARS sets out for VAT vendors. Often this process is made much easier by using the professional services of an accounting tax company such as Taxleaders.Net
Should you wish to process your own registration for VAT, you can visit SARS and complete a VAT101 form. If you are a company, you can register in your business name, however if you are a sole proprietor or in a partnership, you must register in your own name(s).
Registering Through an Accounting and Tax Company
By selecting an accounting and tax company to handle your VAT registrations, record keeping and VAT returns, you free up your time or your staff’s time so they can concentrate on your core business functions. Vat Registrations are made a lot simpler done through an accounting and Tax Company, and you benefit from the expert advice regarding VAT compliance. Your VAT cycle will be strictly followed to ensure your VAT payments are always on time.
At Taxleaders.Net, we offer tax advice and services to individuals, CC’s, PTY’s and sole proprietors. Our fees are highly competitive and our professionalism and service is unmatched. Listed below are the following tax services that we provide:
- Annual Individual and Company Tax Returns
- Capital Gains Taxes
- Emigration Tax Clearance Applications
- Import and Export License Applications
- Income Tax Registrations
- Provisional Tax (IRP6)
- Tax Advice and Calculations (structuring)
- Tax Clearances for Tenders and Good Standing
- Tax Queries at SARS
- Travel Allowance Calculations
- Vat Registrations
Taxleaders.Net insist upon the solid standards of excellence upon which our accounting and tax company continues to succeed. We believe in upholding solid values and in earning the trust and respect of our clients. We treat each of our clients accounting and tax affairs as our own, knowing that if we help grow your business, we will also help grow our own. Our vision is becoming an accounting and tax company that people will believe in as a strategic partner to their business and future financial wellbeing. Contact us for a competitive quote on VAT registrations today.