VAT Registration for a company in South Africa

VAT Registration for a company in South Africa


Hi guys. Brend here, from Company Partners. In this shot video I want to quickly explain, when you can register for VAT. It’s important to understand that there are two different types of VAT registrations at SARS. There’s a mandatory VAT registration and a voluntary VAT registration. I will start with the Mandatory first. When your annual turnover exceeds 1 million rand, you are required by SARS to register for VAT. You can also register for VAT when you estimate that your Annual turnover will exceed 1 million rand for the year, if you have a consecutive monthly turnover of 80 thousand rand. Secondly is the Voluntary VAT registration Process. Any business may choose to register for VAT voluntarily if the income earned in the past 12 month period exceeds 50 thousand rand per month. A business may also register for VAT voluntarily if they have proof of trade, income and invoices for 4500 per month for two consecutive months. Now, the reason why you would want to register for VAT voluntarily, is when you need to sign a contract or a tender and the other party requires a VAT number. The process at SARS can take approximately 7 working days Note that delays at SARS is out of Company Partners hands. The requirements are as follow: To register for VAT, all SARS Tax returns needs to be submitted and up to date. Your documents need to be certified and you also need to be a South African citizen with a personal income tax number to register successfully for VAT. There you have it guys, as easy as that. For more information regarding the Vat process, contact us on: 0800 007 269


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