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VAT

Value Added Tax (VAT).

VAT

What you need to know about VAT.

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:

  • Does my clients require it?
  • What difference will it make to my price and how cost sensitive are my clients?
  • What difference will it make to my bottom line?

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.

Important notes:

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. 

We can assist with the following:

Get a quote

VAT & Accounting services for small businesses in South Africa

Our Accounting Packages change as your business's needs evolve.

Personal Tax
Returns

From

R750

per return

Transparency is part of our foundation therefore copies of all SARS correspondence are provided for your peace of mind.

Micro
Businesses

From

R1,500

p.m.

A Micro Business is classified as a company with a gross income* not exceeding R1 million.

Small
Businesses

From

R2,100

p.m.

A Small Business is classified as a company with a gross income* not exceeding R14 million.

Medium
Businesses

From

R4,000

p.m.

A Medium to large business with a gross income* exceeding 
R14 million.

Two ways to quote.
Tons of ways to save.