Navigating VAT Registration in South Africa: A Comprehensive Guide for Business Owners

VAT registration can be a daunting process for business owners. Especially if you are unfamiliar of the procedure, not knowing when you need to register, or submit and how it all works.

VAT (Value Added Tax) is unavoidable for any organization that earns more than R1 million over the course of 12 consecutive months. As per SARS website, “It is an indirect tax on the consumption of goods and services in the economy.” The money is paid to SARS and then handed to Treasury. It is then distributed to government departments, including provincial and local government.

We’ve put together a list of questions for you to better understand VAT in South Africa.

What Do I Need To Register For VAT?

You will need the following requirements: company registration documents, proof of business bank account, details of your turnover and nature of business, proof of business address and unique tax reference number.

What happens if you don’t pay VAT?

SARS will issue summons against your business for the outstanding amounts like any other creditor. A 10% penalty is imposed on the late payment of VAT. Business owners cannot be criminally charged if they fail to pay over VAT to SARS.

Are all goods and services charged with VAT in South Africa?

No. There are goods and services subject to 0% VAT or exempt from VAT. Contact us to find out more on this list.

When must VAT be submitted in South Africa?

A business is required to submit a return every 2 calendar months.

How long does it take to get a VAT number?

On average, a VAT number is received within 2 months. Sometimes longer, depending on whether you are registered with CIPC.

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A business owner can use an outsourced accountant or tax specialists to help with VAT registration and submissions. Additionally, they communicate with SARS on your behalf, therefore you avoid the hassle of trying to deal with them directly. Taxleaders

Taxleaders take the hassle out of VAT registrations, submission of personal detail changes and calculation of VAT. With our team of experts, we help minimize the time and effort involved.

Contact us for immediate professional assistance.