Results 1 to 10 of 10

Thread: VAT Compulsary?

  1. #1
    Junior Member
    Join Date
    Sep 2018
    Location
    PE
    Posts
    10
    Thanks
    0
    Thanked 0 Times in 0 Posts

    VAT Compulsary?

    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?

  2. #2
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    21,358
    Thanks
    3,095
    Thanked 2,494 Times in 2,098 Posts
    Blog Entries
    12
    Quote Originally Posted by z4ck View Post
    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.

    Quote Originally Posted by z4ck View Post
    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.
    The trouble with opportunity is it normally comes dressed up as work.

    Alcocks Electrical Services | Alcocks Pest Control & Entomological Services

  3. #3
    Junior Member
    Join Date
    Sep 2018
    Location
    PE
    Posts
    10
    Thanks
    0
    Thanked 0 Times in 0 Posts
    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: **********

  4. #4
    Junior Member
    Join Date
    Sep 2018
    Location
    PE
    Posts
    10
    Thanks
    0
    Thanked 0 Times in 0 Posts
    That was all that I received from SARS

  5. #5
    Platinum Member Mike C's Avatar
    Join Date
    Apr 2012
    Location
    Durban
    Posts
    2,450
    Thanks
    216
    Thanked 328 Times in 286 Posts
    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.
    An education isn't how much you have committed to memory, or even how much you know. It's being able to differentiate between what you do know and what you don't. - Anatole France

  6. #6
    Junior Member
    Join Date
    Sep 2018
    Location
    PE
    Posts
    10
    Thanks
    0
    Thanked 0 Times in 0 Posts
    They only gave/sent this:
    Taxpayer reference number: 9*********
    10 numbers starting with a 9

  7. #7
    Junior Member
    Join Date
    Sep 2018
    Location
    PE
    Posts
    10
    Thanks
    0
    Thanked 0 Times in 0 Posts
    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

  8. #8
    Platinum Member Mike C's Avatar
    Join Date
    Apr 2012
    Location
    Durban
    Posts
    2,450
    Thanks
    216
    Thanked 328 Times in 286 Posts
    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.
    An education isn't how much you have committed to memory, or even how much you know. It's being able to differentiate between what you do know and what you don't. - Anatole France

  9. #9
    Junior Member
    Join Date
    Sep 2018
    Location
    PE
    Posts
    10
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Ah good.
    So can trade as per normal no VAT. Thanks

  10. #10
    Junior Member
    Join Date
    Sep 2018
    Location
    PE
    Posts
    10
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Quote Originally Posted by z4ck View Post
    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

Similar Threads

  1. Replies: 1
    Last Post: 04-May-18, 06:09 AM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •