VAT Registration, Recon & Submissions
Our team can assist you with the full VAT process.
Value-Added Tax is commonly known as VAT. VAT is an indirect tax on the consumption of goods and services in the economy.
Revenue is raised for the government by requiring a business, that carries on an enterprise, to register for VAT. In doing so, the business will charge VAT on supplies of goods and services made by it, on the importation of goods and on imported services (subject to certain conditions).
The business will also be entitled to deduct any VAT charged to it, or under limited circumstances from a business that is not registered for VAT, in respect of a supply made to it. The business is required to pay the difference between the VAT charged by it and the VAT charged to it, or claim a VAT refund where the VAT charged to it exceeds the VAT charged by it.
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What is VAT?
VAT is one of those indirect taxes that consumers know they pay, but do not think of as paying taxes per se. This is a very effective way for SARS to collect taxes from millions of taxpayers through a much smaller number of VAT vendors.
The VAT rate changed from 14% to 15% on standard rated taxable supplies on 1 April 2018 which caused a lot of bookkeepers, accountants and finance teams of entities many sleepless nights, but we have all adjusted to the higher rate of levying this indirect tax.
It does not mean that the reconciliation is easy or that responding to a VAT auditor’s queries is a walk in the path.
Who needs to register to be VAT vendors?
Category A: Every 2 calendar months. Under this category, a vendor is required to submit one return for every two calendar months, ending on the last day of January, March, May, July, September and November. Paying VAT every two calendar months is also known as paying VAT “bi-monthly.”
Category B: Every 2 calendar months. Under this category, a vendor is required to submit one return for every two calendar months, ending on the last day of February, April, June, August, October and December.
Category C: Every calendar month. Under this category, a vendor is required to submit one return for each calendar month. A vendor will fall within this category if:
Category D: Every 6 calendar months. Under this category, a vendor submits one return for every 6 calendar months, ending on the last day of February and August (or any other month where a written application is made to the Commissioner and approved). This category applies mainly to a vendor who:
Category E: Every 12 calendar months. Under this category, a vendor is required to submit one return every 12 months, ending on the last day of the vendor’s year of assessment (or any other month where a written application is made to the Commissioner and approved). This category applies to a vendor:
The process for VAT submissions
The full VAT process that we can assist you with entails the following:
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Frequently Asked Questions
There are three different types of supplies that a VAT vendor can make
- Standard rated supplies at 15%. This is normal VAT on goods and services
- Zero rate supplies. Vat is levied on some supplies at 0% VAT
- Exempt / non-supplies. Exempt or non-supplies are supplies that are not subject to VAT
Exempt/non-supplies are supplies that are not subject to VAT. These supplies include, but are not limited to, the following:
- Sport and physical education clubs or activities
- Training and education
- Personal insurance, financial services, investments
- There is a 10% penalty on returns that are filed late to SARS
- There is a 10% penalty for late payment of VAT amounts on returns filed.
- All penalties are also subject to interest from the date that payment should have been made, to the date the payment was made.
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