What is a Spaza shop in South Africa?
Specifically, in South Africa, a Spaza shop, is referred to as a tuck shop, it is actually an informal convenience shop business in South Africa, usually run from home. They also supplement household incomes of the owners, selling small everyday household items. Ever wondered what spaza means? “’Spaza’ means ‘hidden’ in Zulu, this term arose during the apartheid era, when restrictions were placed on black people running businesses. During the apartheid era, many of these shops were established alongside or within people’s homes in order to elude the authorities.
Do I need a license to open a Spaza shop in South Africa?
Provided you sell prepared food, you will need a business license and a valid trading permit. Spaza shops must not be larger than 30㎡, and they must exist in residential areas, these shops are not permitted to sell alcohol or any other restricted items.
How much money do Spaza shops make?
It is important to consider the potential profit before going into any business. A Spaza shop in a very busy area can be able to make around R1 000 – R6 000 on a daily basis. This depending on the items it sells and their market demand.
How do I register for Spaza in South Africa?
In South Africa, spaza shop intending owners need to go to a SARS branch with the documents from the CIPC where you registered your tuckshop, as well as your ID and proof of residence of the tuckshop.
Do spaza shops pay tax?
Yes, But indirectly, spaza shops play a vital role in serving local communities as part of the informal economy. They contribute to indirect taxes (Value-add Tax) through their purchasing from suppliers and direct taxes (Income Tax) on their income earned.
How much does it cost to open a Spaza shop?
The cost of starting a Spaza shop depends on your location, the size of your business, and what products you will stock. On average, a starting capital of about R5, 000 will be needed.
What are the requirement for registering a Spaza shop funding in South Africa?
To buy products from a basket of goods approved by the department that will change from time to time, in order to boost sales for South African small businesses.
To operate a business banking account, and be willing to participate in the Small Enterprise Development Agency (SEDA) supported business management support program.
To uphold health and safety guidelines, including:
- Disinfecting the service counters.
- Sanitizing before and after serving each customer.
- Maintaining social distancing.
- Not selling counterfeit goods and stale/expired foodstuffs;
- Not using trading spaces as sleeping quarters
