SARS allows VAT registration only once turnover exceeds R500k p.a. If there is reasonably good indication that a new business is going to exceed that registration thresh-hold in year 2 it seems prejudicial that they would not be allowed the opportunity of off-setting VAT (inputs vs outputs) in a scenario where substantial CAPEX is being made in the first 12 months.
For example - R1.75million Capex and R750k working capital investment in year 1 and turnover of R350k (projected R1.2m turnover projected for year 2).
Input Vat exceeds Output Vat by R301k obviously prejudicing cash flow.
Is their no way SARS would make a registration exception?
Does SARS allow Yr1 Vat to be claimed back in Yr2 post VAT registration?