Quote Originally Posted by NibbleIT View Post
I've just noticed that small businesses are more inclined to trade with you if you are VAT registered so that they can claim it back. If it wasnt for that I would never have had to register for VAT
I find that surprising. It doesn't really make much difference to them. If you charge R100 with no VAT or R114 with VAT, its still the same ultimate price to them. I know thats a bit over simplified and that there might be a bit of a price benefit in the B2B chain, but the difference should hardly be affecting their decisions.

Perhaps they just like the idea that a VAT registration gives you some sort of credibility, which I suppose it does. SARS will check that you have actually conducted a certain amount of business before they give out the number. The only problem for the start up is that they actually have to do that turnover. SARS have become stricter in their processes, so they will only deal in historical confirmed figures, rather than mere promises.