[Question] VAT Registration Requirements

[AmithS]

Hello,

Regarding VAT registration for businesses with turnover under R1 000 000 and over R50 000 in a 12 month period.

Is the interpretation of the 12 month period - the businesses last financial year or the last 12 months at date of R50 000 cumulative turnover irrespective of financial year ending? (if this question makes sense)

Thanks,

[AmithS]

Sorry should of mentioned I am referring to the voluntary registration for turnovers over R50 000

[Dave A]

My understanding is it's any consecutive 12 month period. However, the position becomes glaringly evident when one examines the financial statements.

[AmithS]

Thanks Dave, Any idea if you only start charging\paying\submitting VAT once your registration is finalised by SARS or will it be back dated for the full financial year.

Reason I ask with one VAT reg many moons ago I remember SARS sending a whole lot of returns to be completed for the previous months of the financial year. Or if this does happen do you just complete them as nil returns and only work from the registration date?

[Andromeda]

The application form requires that you state from which date you are to be a VAT vendor and you then submit for the designated periods from that date.

[AmithS]

Thanks Andromeda, do you exclude VAT from supplier invoices (expenses) for accounting purposes irrespective if you VAT registered or not?

[Andromeda]

Hi

No. In simple terms once you are VAT registered, (Expense + VAT) = what you paid, or what you owe.

When you are not VAT registered Expense = what you paid, or what you owe.

By implication your expenses and merchandise are 15% more expensive to you, if you are not registered.