I spoke to 3 SARS consultants today and I don't fully understand what they meant. I just need clarification.
I have received a contract (value of R1.5 million) from an NGO which is VAT registered.
I am not yet VAT registered but I'm fully aware that I will be forced to register because I'll exceed the VAT exemption threshold.
Once I do register, I will be liable to pay the VAT on the amount of money I received.
How do I invoice my client?
I can't give them a TAX Invoice if I'm not VAT registered.
The SARS consultant said I have to invoice them without VAT and once I do get registered for VAT I need to reinvoice them.
She also said that I can download the VAT payment undertaking letter from the SARS website (nowhere to be found) and this would allow me to give them a TAX Invoice (without a VAT number). The client can pay the VAT directly to SARS or I have to do it myself. That is entirely dependant on the client.