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Does your annual turnover exceed R1 million? You must register for Vat!

by , 23 July 2015
It's compulsory to register for Vat if your turnover exceeds R1 million.

To register you need to complete and submit a VAT101 form within 21 days from date of exceeding R1 million.

If you miss this deadline you could face a non-compliance penalty.

This is just one of the forms and supporting documents you need to submit.

Read on for the eight other supporting documents and forms you need, when applying for Vat registration.

Don't take up to six months to register for Vat! Here's how to do it the same day
One of the biggest problems with Vat registrations is not having the right supporting documents and not complying with SARS' requirements. The registration process can take up to six months.
Well it doesn't have to be a problem for you.
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Three forms you must submit when you apply to SARS for registration as a Vat vendor:

  • VAT101 – Value added tax: Application for registration
  • VAT127 – Business plan for purposes of compulsory Vat registration.
  • VAT130 – Value-added tax: notification of appointment as bookkeeper/external auditor or accountant

When you apply for Vat registration as a Vat vendor, you must include the following documents:

Checklist: Four supporting documents you need when applying for Vat

1.    Certified copies of the ID or passport of the person who submits the Vat returns
2.    One of the below documents confirming your bank details:
  • An original bank statement stamped by the bank, no older than three months. The account number and branch number needs to be clearly shown; and
  • SARS will accept an original letter from the bank, stamped by the bank, if it's a new bank account and you're unable to draw a statement. It must also clearly show the account holder, branch number and account number.

Vat registration has never been this easy!

My team of Vat experts at FSPBusiness.co.za have compiled the The A-Z of Vat registrations: How to Get Your Vat number the same day which tells you exactly how to make sure you have a seamless Vat registration and knock down all the doors SARS closes on you when applying for a Vat number.

This report equips you with the knowledge to make a long process simple while being sure you're 100% compliant.

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The two other supporting documents you need when applying for Vat

3.    A completed VAT130 form, together with a letter of appointment or engagement letter from your bookkeeper, accountant or external auditor.
4.    A copy of documents dependant of the type of company you've registered. Refer to the Registrations chapter R08 in the Practical Tax Loose Leaf.

There you have it! All the supporting documents and forms you need to successfully register for Vat.

P.S. One of the most common issues that confuses people is whether or not to charge Vat for a supply or service you render to another person or business. Click here to use this failsafe rule to solve your question in two EASY steps!

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Natalie 2016-08-26 11:20:40

Please help! My husband operates as a sole trader and has been in business for about 9years.
He has just signed another contract with the same company he been working with for all these years, and their accounts department brought it to his attention that he earns R100 048 000 in 2015. And apparently we should have declared this 21 days after it happened.
What now?
Also, he probably won't earn over R1M again this year: what then?
Please help!

Liezel le Roux 2015-08-06 13:46:52

Good Day,

I hope I can word this query correctly.

If a company employs a contractor who's turnover for work done for the company is more than R1million per year. Can SARS then claim the VAT from the company if the contractor is not registered for VAT. I know that any company whose turnover exceeds R1million per annum MUST register for VAT, but in this case the contractor is not registered.

I have heard of a case where a few years ago SARS claimed back the VAT from the company where the contractor was not registered for VAT and had a Turnover of more than R1million per year.

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