SARS (South African Revenue Service) specifies the VAT registration requirements.
This government agency collects VAT from the initial manufacturing stage to the final consumer stage.
Calculating VAT to be paid back to SARS is easy, especially if yours is a small business.
A calculator lying next to a book and pen. Photo: pixabay.com @EdarSource: UGC
What is VAT?
However, some products (zero-rated products) are exempted from this indirect tax.
These zero-rated products are basic food items like maize meals and vegetables.
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A business may also register voluntarily if the income earned in the past 12-month period exceeds R50 000.
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These documents help you fill out a VAT 101 form.
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Bring them and the form to the nearest SARS centre to complete the VAT number registration process.
How can I register via the SARS eFiling system?
A business enjoys some benefits after submitting tax returns.
A SARS post. Photo: @BISouthAfricaSource: Twitter
Use the SARS eFiling platform.
You are free to change and personalize your access code.
A person is defined as a company, individual, partnership, trust fund, and municipality.
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Businesses that fall into this category are referred to as vendors.
If you have a new company, you could voluntarily register for a VAT number for your business.
That is, if your annual sales fall below R1 million.
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The minimum threshold for voluntary VAT registration was R50,000 in sales accrued over 12 months.
These companies are mainly micro-businesses that may include individuals, partnerships or cooperatives.
It is up to you to decide to scale your business operations.
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The mandatory and voluntary VAT registration requirements are similar.
How long does VAT registration take in South Africa?
If you register via the SARS eFiling system, your profile will be activated within 48 hours.
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If it takes any longer, you are advised to contact SARS.
Otherwise, via manual registration, it takes anywhere from 10 days.
The offices close on weekends andPublic Holidays.
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It is a unique 10 digit number that starts with the number 4.
The digit 4 on the SA tax identifies a person/entity as a registered VAT vendor in South Africa.
For example, a4330182355.
A VAT illustration. Photo: @MooreSAfricaSource: Twitter
Once issued, this unique identifying number is expected to be indicated on all your valid tax invoices.
What are the benefits of registering for VAT in South Africa?
If you have been thinking, “what qualifies you to be VAT registered?”
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How do I get a VAT number in South Africa?
Register for VAT on eFiling.
What are the requirements for VAT registration?
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The frequency with which you pay VAT to SARS depends on yourtaxable period.
Category C
A vendor submits one return for each calendar month.
Apply in writing to be placed in this category.
A tax calculator. Photo: @HiTekAccountingSource: Facebook
A vendor submits one return after every 6 months, ending on the last day of February and August.
It must be a company or trust fund to fall within this category.
Additional criteria to fall within this category are outlined in Chapter 3 of the VAT 404 guide.
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Category F
The four-monthly tax period is for small businesses.
Seek help from a certified tax practitioner if you lack these VAT registration requirements.
You need an SA tax number when filing returns.
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She has a Bachelor of Commerce & IT from the University of Nairobi and joined Briefly.co.za in November 2019.
The writer completed a Google News Initiate Course.
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you might email her at perisrodah254@gmail.com.
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