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Do you know these four general rules when it comes to tax periods?

by , 23 October 2015
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:

Rule#1:

Remember that SARS determines its tax period for you.

Rule#2:

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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Rule#3:

Tax periods ALWAYS end on the last day of a calendar month.

Rule#4:

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.

To learn more, subscribe to the Practical Vat Loose Leaf Service.
 
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