How To Register For Vat in South Africa
If the total cost of taxable products or services in a 12-month period exceeds R1 million or is anticipated to exceed this amount, you must register your firm for Value Added Tax (VAT).
If a business made more than R50 000 in revenue during the previous 12 months, they may also register voluntarily.
The value-added tax (VAT) is an imposed on the economy’s consumption of goods and services.
Within 21 days after the date on which the amount exceeds R1 million, turn in the registration form to your local SARS branch.
When registered vendors sell goods and services, VAT is charged at a standard rate of 15%.
There is a small selection of goods and services that are either exempt from VAT or subject to it at a zero rate.
How To Cancel VAT Registration
If the total value of your taxable supply is less than R1 million or if all company operations have ceased, you may submit an application to have your Value Added Tax (VAT) registration canceled.
If the Commissioner determines that your taxable supplies do not exceed R1 million or that you have ceased operations, your VAT registration will merely be canceled.
After ending your firm, you must inform South African Revenue Service (SARS) within 21 days.
Any unpaid VAT debts incurred while your company was registered as a seller will still be your responsibility.
What To Know About New VAT Registration
The VAT liability date cannot be backdated for more than six months from the current date for new VAT registrations. If the liability date is older than six months, you will need to visit the SARS branch with the requisite supporting papers, such as financial statements, contracts that have been signed, or issued invoices, in order to obtain a further backdating.
What To Know About Existing VAT Registration
No backdating of the VAT liability date will be permitted via the eFiling channel for VAT registrations that are already in place. If you want to request a change in the VAT responsibility date, you must go to the SARS branch with the relevant proof of identification.
What To Know About Voluntarily VAT Registration
The system will be configured to “today’s date” for voluntary new VAT registrations, with the liability date not being able to be backdated. In the event that you have already charged VAT but have not yet registered, you should request the backdating by going to a SARS branch with the appropriate documentation to support the claim.
In the event that the responsibility date was entered incorrectly, a warning notice will appear along with a recommendation to contact a branch armed with the required paperwork.
