VAT Compulsary?

[z4ck]

I just registered a company, was easy thru FNB.
With this registration they registered business with SARS & received a tax/vat no.
Business is mainly service related (70%), with some goods sales here & there (30%).
Now, am I compelled to charge VAT as I don't foresee going over R1m mark.
Or can I just trade normally without VAT?

[Dave A]

With this registration they registered business with SARS & received a tax/vat no.

That "tax/VAT" number part troubles me. For clarity, they are two different registrations with SARS and with definitely different numbers.

You had better get absolute clarity about whether the new company was actually registered for VAT. It normally involves some fairly onerous submissions and is not automatic.

Now, am I compelled to charge VAT as I don't foresee going over R1m mark.

If you are VAT registered, you must charge VAT on taxable supplies. If you are not VAT registered, you may not charge VAT on taxable supplies.

[z4ck]

This is what was sent 2 days after company registration.

Dear Taxpayer

NOTICE OF REGISTRATION

The South African Revenue Service (SARS) confirms registration of the following taxpayer:

Registered name: "Company Name"
Taxpayer registration number: 2018/******/**
Taxpayer reference number: **********

[z4ck]

That was all that I received from SARS

[Mike C]

If you were registered for VAT you should have received a VAT registration number as well (10 numbers) starting with 4...

They also include the date from which you were registered for VAT and how often you need to submit returns etc.

[z4ck]

They only gave/sent this:
Taxpayer reference number: 9*********
10 numbers starting with a 9

[z4ck]

They only gave/sent this:
Taxpayer reference number: 9*********
10 numbers starting with a 9
Which included the below in email

Your tax obligation

Every Company/Close Corporation which conducts business or has an office in South Africa must, within one month thereof appoint a representative as the Public Officer of the Company. The relevant particulars of the representative must be furnished to a SARS branch.

Every company is regarded as a provisional taxpayer. The Company/Close Corporation is required to make provisional tax payments as from the 2020 tax period.
Date of liability for provisional tax : 201904
Provisional payments must be made twice a year on or before the following dates: September and March

Your attention is drawn to the provisions of section 89bis of the Income Tax Act and paragraph 27 of the Fourth Schedule to the Income Tax Act, in terms of which interest at the prescribed rate and a penalty of ten percent will be charged on any amount not paid on or before the date on which payment for the relevant period is due.

Kindly notify SARS of any change to your registered particulars within 21 business days of such change.

Should you have any queries please call the SARS Contact Centre on 0800 00 SARS (7277). Remember to have your taxpayer reference number at hand when you call to enable us to assist you promptly.


Sincerely

ISSUED ON BEHALF OF THE SOUTH AFRICAN REVENUE SERVICE

[Mike C]

Ok. So that is the Tax number of your Company which you will use when submitting your provisional and year-end tax.

It appears that you are not registered for VAT.

[z4ck]

Ah good.
So can trade as per normal no VAT. Thanks

[z4ck]

Ah good.
So can trade as per normal no VAT. Thanks

Seems I can't edit posts.
Any goods purchased would be incl VAT so "I" will just add markup, no VAT