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Are you a 100% sure you're following the correct Vat registration process?

by , 08 May 2014
You may think you're following the correct Vat registration process. What you might not realise however, is there are different registrations processes if you're a local business or operating outside of South African. Let's take a look at the different registration process you may need to follow.

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Errors in Vat invoices could cost you thousands!
 
Are there any inaccuracies in your Vat invoices? You may be charged a very high penalty!
 
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Vat registration for local companies

If you operate your company locally and your profit is over R1 million in any 12 month period, then you have to register for Vat
If your profit is only R50 000 or above, you can register but you don't have to.
 
According to South African Registrations, this is what you'll need to have for your registration:
 
- Your company tax number.
- Your completed and signed Vat application form.
- Copies of registration document.
- Identity documents for the two main directors.
- An original signed and stamped letter from your bank with the business bank details 
- Identity documents for the representative employer.
- Recent original business municipal account.
- If your company leases the property, a copy of the lease agreement.
- Copy residential municipal account.
- Your completed proof of residential address form.
- Copy of financial information that shows the details of your taxable supplies
 
Give all of this in to your nearest SARS office. You'll must do this whole application within 21 days of your profit reaching the one million mark.
 
It's a lot of paper work but not a difficult process to follow.
 
So what if you're an overseas company?
 
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Think Vat doesn't apply to your payroll?
 
You're wrong! 
 
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Vat registration for foreign companies

If you're an overseas company supplying goods and services in South African (now including online services), you can do the Vat registration online. You have to register if your profit is over R1 million in any 12 month period. 
 
We've discussed here, that overseas companies can find their Vat registration form online, complete it and email it back to SARS. The remaining documents may include you and your directors' identifications; Bank statements. A South African representative for the country can take these to SARS. 
 
As you can see, the Vat registration requirements are pretty much the same, but the process is quite different.  Make sure you stick to those defined for your company, or you'll land in trouble with SARS before you even start paying Vat
 


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