Seven tax period rules you NEED to know
Once you're registered as a Vat vendor, SARS will send you notification with your Vat registration number and the tax period it expects you to submit your Vat returns in. To ensure you're always compliant, there are seven rules you must be aware of. Find out what they are...
If you've registered with SARS as a Vat vendor, make sure you know the following tax period rules...
Are you aware of these seven tax period rules?
SARS determines your Vat category for you.
The Vat category you're in determines the tax periods you need to pay your Vat in.
Your Vat category must change if your annual turnover changes.
It's your responsibility to notify SARS if your turnover changes. They'll move you to the correct category and change your tax periods.
A change in tax period won't necessarily be backdated, you have to wait for SARS to notify you of your new tax period.
Tax periods always end on the last day of a calendar month.
Repeated late submission will result in an audit!
If you've forgotten which Vat category or tax period you fall under, refer back to the certificate of registration SARS sent you when you registered your business for Vat purposes, says the Practical Tax Loose Leaf Service.
Remember, ignorance of the law is no excuse. Keep these seven rules handy to ensure your business is always compliant with SARS.