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 34,402,047
Cases: 34,402,047
Deaths: 617,109
Recovered: 28,695,025
Active: 5,089,913
India 29,931,212
Cases: 29,931,212
Deaths: 388,096
Recovered: 28,830,037
Active: 713,079
Brazil 17,883,750
Cases: 17,883,750
Deaths: 500,868
Recovered: 16,183,849
Active: 1,199,033
France 5,755,496
Cases: 5,755,496
Deaths: 110,724
Recovered: 5,555,389
Active: 89,383
Turkey 5,365,208
Cases: 5,365,208
Deaths: 49,122
Recovered: 5,228,419
Active: 87,667
Russia 5,316,826
Cases: 5,316,826
Deaths: 129,361
Recovered: 4,869,972
Active: 317,493
United Kingdom 4,630,040
Cases: 4,630,040
Deaths: 127,976
Recovered: 4,301,985
Active: 200,079
Argentina 4,258,394
Cases: 4,258,394
Deaths: 88,742
Recovered: 3,868,105
Active: 301,547
Italy 4,252,976
Cases: 4,252,976
Deaths: 127,270
Recovered: 4,037,996
Active: 87,710
Colombia 3,917,348
Cases: 3,917,348
Deaths: 99,335
Recovered: 3,644,287
Active: 173,726
Spain 3,757,442
Cases: 3,757,442
Deaths: 80,652
Recovered: 3,544,205
Active: 132,585
Germany 3,729,753
Cases: 3,729,753
Deaths: 90,954
Recovered: 3,603,000
Active: 35,799
Iran 3,095,135
Cases: 3,095,135
Deaths: 82,965
Recovered: 2,748,320
Active: 263,850
Poland 2,878,767
Cases: 2,878,767
Deaths: 74,828
Recovered: 2,650,476
Active: 153,463
Mexico 2,475,705
Cases: 2,475,705
Deaths: 231,151
Recovered: 1,969,137
Active: 275,417
Ukraine 2,229,523
Cases: 2,229,523
Deaths: 52,016
Recovered: 2,151,463
Active: 26,044
Peru 2,026,729
Cases: 2,026,729
Deaths: 190,202
Recovered:
Active: 1,836,527
Indonesia 1,989,909
Cases: 1,989,909
Deaths: 54,662
Recovered: 1,792,528
Active: 142,719
South Africa 1,810,164
Cases: 1,810,164
Deaths: 58,590
Recovered: 1,640,849
Active: 110,725
Netherlands 1,678,983
Cases: 1,678,983
Deaths: 17,726
Recovered: 1,601,923
Active: 59,334
Czechia 1,666,025
Cases: 1,666,025
Deaths: 30,280
Recovered: 1,632,840
Active: 2,905
Chile 1,517,018
Cases: 1,517,018
Deaths: 31,513
Recovered: 1,445,703
Active: 39,802
Canada 1,408,476
Cases: 1,408,476
Deaths: 26,066
Recovered: 1,370,354
Active: 12,056
Philippines 1,359,015
Cases: 1,359,015
Deaths: 23,621
Recovered: 1,277,715
Active: 57,679
Iraq 1,287,465
Cases: 1,287,465
Deaths: 16,885
Recovered: 1,200,103
Active: 70,477
Sweden 1,084,636
Cases: 1,084,636
Deaths: 14,537
Recovered: 1,046,065
Active: 24,034
Romania 1,080,256
Cases: 1,080,256
Deaths: 32,326
Recovered: 1,045,122
Active: 2,808
Belgium 1,079,084
Cases: 1,079,084
Deaths: 25,132
Recovered: 1,007,785
Active: 46,167
Pakistan 948,268
Cases: 948,268
Deaths: 21,977
Recovered: 892,319
Active: 33,972
Portugal 865,050
Cases: 865,050
Deaths: 17,065
Recovered: 819,688
Active: 28,297
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