About 10 months back I opened another store. Because of added turnover of this shop I had to register for vat, and this eats into my net profits hugely, at the least, around R450 per R10000.

Just working on last years figures, I would have done marginally better NOT having opened the new shop, and staying under the vat threshold, even though the new shop makes a small profit every month!

I do not regret it, it’s better to have two for quite a few reasons, and will not be closing it, but maybe I should have put the other one in my wife’s name….

If you are going to just break the 1mill mark, think long and hard before registering for vat, it might not be worth it.