A tax payer is not necessarily registered for Value Added Tax (VAT).
VAT is an additional tax that requires a specific registration application process.
A company, trust or sole proprietor can register for VAT
Compulsory registration is required when a tax payer exceeds, or expect to exceed, a turnover of more than R1 million in any consecutive 12 months.
Voluntary registration can be done with less that R1 million turnover but careful consideration should be given to this as it may very well increase your administrative cost and risk for non-compliance with Tax regulations..
Ask yourself the question:
VAT registration is done via Efiling and the turnaround time depends on the specific Tax payer’s profile but it can be as quick as 30 minutes or as long as 2 months.
Our price is R1,500 per application.
If you are a vat registered, it means that all income is subject to vat, irrespective of your client’s vat status, meaning you cannot choose to charge vat or not.
We have 3 different rates of vat in South Africa: 15%, 0% and exempt. The vat act prescribes which rate to be used for what service/product.
There are also different intervals of vat submissions: monthly, bi-monthly and bi-annually, but most small businesses fall under the bi-monthly category.
SARS is very strict will submission deadlines, and penalties can vary from 10% for late submissions to 200% for intentional Tax evasion.
Transparency is part of our foundation; therefore, copies of all SARS correspondence are provided for your peace of mind.
A Micro Business is classified as a company with a gross income* not exceeding R1 million.
A Small Business is classified as a company with a gross income* not exceeding R14 million.
A Medium to large business with a gross income* exceeding