Do you know these four general rules when it comes to tax periods?
Upon registering as a VAT vendor, the South African Revenue Service (SARS) will send you a notification with your VAT registration number as well as the tax period it expects you to submit.
Of these periods, there are one, two, four six and twelve calendar-month periods.
Now, it's important for you to be organised as you'll need to submit your VAT return by your particular period's due date. Failure to do so can lead to big penalties.
Having said that, there are four general rules that you should know about tax periods:
Remember that SARS determines its tax period for you.
If, for whatever reason, your qualifying circumstances change (like, for example, your turnover goes through a huge increase), you must notify SARS so that they can move you over to the correct VAT category and tax period.
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Tax periods ALWAYS end on the last day of a calendar month.
You must apply to SARS, in writing to end your tax period on a particular fixed date.
But then, keep the following in mind:
· You may only close your month off 10 days before or after the last day of a month; and
· You first need to get SARS' written approval BEFORE changing your return dates.
*Those were four general rules to keep in mind when it comes to tax periods.
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The three biggest concerns of VAT vendors in 2015
1. On 1 April 2015, SARS made 94 changes to the VAT Act. This changed the way you claim input tax, zero-rated goods and the definition of an enterprise to name but a few changes!
2. SARS issued over two million VAT review letters in 2014. But there are only 700 000 VAT vendors. And by law, if you don't respond to this letter, you'll give SARS license to grab money out of your bank account!
3. Non-compliance with the ever-changing VAT legislation means SARS won't hesitate to assess, fine and penalise you.
Well, we've got you covered! We'll keep you updated of all the VAT law changes, as they happen. And we'll also give you specialist tips and advice to protect you from SARS inspectors' fines and penalties.
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