This "Threshold Thing", is gonna lock many SME, into the Micro Enterprise Mindset. In other words, "SME's will not intend to grow big".
A million in turnover is not much. It Translates into a monthly turnover(not profit) of about R83 000, R83 333 to be exact. Of course many sme, or should i say ME's are happy with their comfort/survivalist zone of between
R20 000 to R50 000 turnover a month. But for the enthusiastic entrepreneur constant new growth targets are set, way above the Vat threshold on a monthly basis.
An odd situation could(and will) arise where the vat vendor de-registers, and is compelled to re-register when the threshold is is exceeded.
Hang in there, unless you have no hope of ever breaking the million mark.![]()
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