Who needs to register for VAT?

Who needs to register for VAT?

VAT101 – Value Added Tax Registration Application – External form

Value-Added Tax is based on the Value-Added Tax Act 89 of 1991.

In the first place it is an indirect tax based on consumption in the economy. Furthermore VAT is charged on taxable supplies of goods or services for the benefit of the National Revenue Fund.

Additional you will be liable for compulsory VAT registration if you are carrying on an enterprise and make taxable supplies exceeding R1 million in any consecutive period of 12 months, or will exceed that amount in terms of a written contractual obligation. The R1 million threshold applies to the total value of taxable supplies (turnover), and not Net profit.

Can I do a voluntary registration?

In the event you want to register voluntarily, even if your sales (turnover) are less than R1 million, these are the conditions

• Municipality / or welfare orginasation
• Your turnover has exceeded the minimum threshold of R 50 000 in the past 12-month period
• Commercial accommodation supplies of minimum threshold of R 120 000 in a 12-month period

Herewith VAT101 Vendor application form

How do I register on eFiling?

With this intention, a Vendor has to be registered as an eFiler to be able to submit VAT201 declarations and make VAT payments via eFiling.

This will apply to:

• Individuals
• Tax practitioners
• Organisations (e.g. Companies, Close Corporations, Trusts and Exempt Institutions).

For assistance with the eFiling registration process, refer to the “How to register, manage users and change user password on eFiling” available on the SARS website www.sars.gov.za.

Navigate to www.sarsefiling.co.za

If you already registered on eFiling and wish to activate VAT on eFiling in order to submit VAT201 Declarations and make payments follow the steps below:

• Log in with your Login name and Password
• Once logged into eFiling, select “Organisation Tax Types” from the side menu options under ORGANISATIONS
• Tick the “VAT201” box, fill in your VAT Reference Number in the space provided and select the applicable Tax Office from the drop down box and click “Submit”.

How and when is VAT payable to SARS?

• SARS eFiling;
• EFT at the Bank
• Over the counter at the bank branch

VAT is payable manually on the 25th of the following month (every second month), or the last working day before the 25th.

If VAT is submitted via eFiling, the due date is on the last working day of the month, after your tax-period.

Your VAT registration will determine your 2-monthly pay-period.

Lastly, always remember to do your VAT recon!

What is new on VAT?

• The main enterprise can set-off  an outstanding tax debt of another branch
• The branch account can be set-off against an outstanding tax debt of the main enterprise or an outstanding tax debt of another branch.