VAT Registration

 

Value-Added Tax is commonly known as VAT. VAT is an indirect tax on the consumption of goods and services in the economy. Revenue is raised for government by requiring certain businesses to register and to charge VAT on the taxable supplies of goods and services. These businesses become vendors that act as the agent for government in collecting the VAT.

 

VAT is charged at each stage of the production and distribution process and it is proportional to the price charged for the goods and services.

 

VAT Registration is levied at the standard rate of 15% on the supply of goods and services by registered vendors. A vendor making taxable supplies of more than R1 million per annum must register for VAT. A vendor making taxable supplies of more than R50 000 but not more than R1 million per annum may apply for voluntary VAT registration. Certain supplies are subject to zero rates or exempt from VAT.

 

There is a limited range of goods and services which are subject to VAT at the zero rate or are exempt from VAT.

 

Who should register for VAT?
Any person that carries on a business may register for VAT. The term person is not only limited to companies but also includes, amongst others, individuals, partnerships, trust funds, foreign donor funded projects and municipalities. In order to register, an application form must be completed and a specific process must be followed.

 

Types of Vat Registrations

  1. Mandatory VAT Registration: As soon as your Company exceeds R 1 million in sales within a 12 months period, it becomes mandatory to register for Vat at SARS.
  2. Voluntary VAT Registration: You can register your new Company for VAT voluntarily if you need a VAT Number.

In order to apply for VAT, the following documents and information is required:

  • CC/Company registration documents.
  • Company and member/director contact details
  • Business description/activity
  • CC/Company needs to be registered for Income Tax.
  • SARS Power of Attorney which gives us the authority to apply for VAT on your behalf (which will be sent to you via email once the order is placed).
  • Certified Clear ID copy of Member(s)/Director(s).
  • An Original letter from the bank confirming the business bank account (must state when the account was opened, with a bank stamp not older than 1 month).
  • Latest original (3) months Bank Statement along with Invoices to your Clients, the total of monthly invoices must be in excess of R50,000 per month for the any one month on the supplied bank statement. These invoices must reflect on the supplied bank statement.
  • Original latest Municipal statement of Account in the Business name, if not available then you can provide the municipality account in the member/director’s name and a lease agreement showing that your company leases this property from the member/director.

Note that SARS can come out for site inspection to verify if the business is trading and its activities.

 

This VAT Registration process takes 2-5 business days. However, if there is a delay from SARS due to excessive workload, the process could take longer.

 

If SARS decides to come for site inspection, the process could take 21-40 business days.

 

When should I submit returns and make payments?

A vendor is required to submit VAT returns and make payments of the VAT liabilities (or claim a VAT refund) in accordance with the tax periods allocated to the vendor. The VAT returns and payments are normally submitted / made on or before the 25th day after the end of the tax period. Late payments of VAT will attract penalties and interest.

 

Cost for VAT Registration: R 1 499.00

Live Covid-19
United States 43,532,491
Cases: 43,532,491
Deaths: 702,978
Recovered: 33,033,525
Active: 9,795,988
India 33,593,492
Cases: 33,593,492
Deaths: 446,399
Recovered: 32,840,724
Active: 306,369
Brazil 21,308,178
Cases: 21,308,178
Deaths: 593,018
Recovered: 20,319,520
Active: 395,640
United Kingdom 7,565,867
Cases: 7,565,867
Deaths: 135,803
Recovered: 6,104,818
Active: 1,325,246
Russia 7,354,995
Cases: 7,354,995
Deaths: 201,445
Recovered: 6,558,780
Active: 594,770
France 6,977,722
Cases: 6,977,722
Deaths: 116,371
Recovered: 6,696,335
Active: 165,016
Turkey 6,960,297
Cases: 6,960,297
Deaths: 62,524
Recovered: 6,432,743
Active: 465,030
Iran 5,493,591
Cases: 5,493,591
Deaths: 118,508
Recovered: 4,872,865
Active: 502,218
Argentina 5,246,998
Cases: 5,246,998
Deaths: 114,772
Recovered: 5,105,252
Active: 26,974
Colombia 4,946,811
Cases: 4,946,811
Deaths: 126,032
Recovered: 4,786,487
Active: 34,292
Spain 4,943,855
Cases: 4,943,855
Deaths: 86,185
Recovered: 4,700,300
Active: 157,370
Italy 4,649,906
Cases: 4,649,906
Deaths: 130,551
Recovered: 4,414,272
Active: 105,083
Indonesia 4,201,559
Cases: 4,201,559
Deaths: 141,114
Recovered: 4,012,448
Active: 47,997
Germany 4,185,633
Cases: 4,185,633
Deaths: 93,847
Recovered: 3,943,200
Active: 148,586
Mexico 3,608,976
Cases: 3,608,976
Deaths: 274,139
Recovered: 2,961,363
Active: 373,474
Poland 2,900,862
Cases: 2,900,862
Deaths: 75,537
Recovered: 2,660,036
Active: 165,289
South Africa 2,892,081
Cases: 2,892,081
Deaths: 86,655
Recovered: 2,753,334
Active: 52,092
Philippines 2,434,753
Cases: 2,434,753
Deaths: 37,405
Recovered: 2,231,558
Active: 165,790
Ukraine 2,370,425
Cases: 2,370,425
Deaths: 55,284
Recovered: 2,237,973
Active: 77,168
Peru 2,170,475
Cases: 2,170,475
Deaths: 199,156
Recovered:
Active: 1,971,319
Malaysia 2,156,678
Cases: 2,156,678
Deaths: 24,681
Recovered: 1,933,713
Active: 198,284
Netherlands 1,991,628
Cases: 1,991,628
Deaths: 18,144
Recovered: 1,905,452
Active: 68,032
Iraq 1,987,352
Cases: 1,987,352
Deaths: 21,993
Recovered: 1,882,596
Active: 82,763
Czechia 1,687,973
Cases: 1,687,973
Deaths: 30,448
Recovered: 1,651,608
Active: 5,917
Japan 1,683,965
Cases: 1,683,965
Deaths: 17,319
Recovered: 1,612,984
Active: 53,662
Chile 1,649,409
Cases: 1,649,409
Deaths: 37,410
Recovered: 1,605,568
Active: 6,431
Canada 1,594,200
Cases: 1,594,200
Deaths: 27,581
Recovered: 1,521,645
Active: 44,974
Bangladesh 1,548,320
Cases: 1,548,320
Deaths: 27,337
Recovered: 1,507,789
Active: 13,194
Thailand 1,537,310
Cases: 1,537,310
Deaths: 16,016
Recovered: 1,393,902
Active: 127,392
Israel 1,254,351
Cases: 1,254,351
Deaths: 7,611
Recovered: 1,180,403
Active: 66,337
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