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.
It is mandatory for a person to register for VAT if sales made from selling goods or services is in excess of R1 million in any consecutive twelve month period.
In order to register, an application form must be completed and a specific process must be followed.
Service Turnaround Time
5-7 working days after receiving all the required supporting documentation, however if SARS requires a site audit this can take between 30-45 days.
What is VAT?
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 is presently levied at the standard rate of 14% on the supply of most goods and services and on the importation of goods. The VAT on the importation of goods is collected by customs. There is a limited range of goods and services which are subject to VAT at the zero rate or are exempt from VAT.
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