Four tips for easy Vat registration
Tip #1: Make sure you fall into one of the four Vat registration categories if your turnover is nil
SARS will refuse to register you if your turnover is less than R50 000 per year. But, if your business is one of the four listed below, you can still register for Vat, even with a nil turnover:
1) Welfare organisations;
2) Municipalities and water boards;
3) Certain public authorities; and
4) Businesses that will have a turnover in excess of R50 000 in the next period of time.
+++ Confidential. 13 Vat secrets SARS doesn't want me to publish
Tip #2: Include and exclude these three values in your taxable turnover
When you calculate your taxable turnover for Vat purposes:
• Include the value of zero-rated supplies;
• Exclude the value of exempt supplies; and
• Fill in standard-rated, zero-rated and exempt supplies in the appropriate boxes on the Vat return.
Tip #3: Register if your input tax exceeds your output tax
It benefits you to register if your input tax is likely to exceed your output tax.
Tip #4: Disclose all your trading names
When you register, disclose all your trading names. If you don't, SARS could deny customer input tax
Got that? Good!
For those of you who want to brush up on your Vat registration knowledge, read more here
Luckily our subscribers know that they can avoid penalties and costly Vat audits relating to Vat registering mistakes, with the Practical Vat Loose Leaf
by their side.
If you're not a subscriber yet and would like activate your Practical Vat Loose Leaf Service, click here.
Until next time,
Managing Editor, Practical Vat Loose Leaf Service
P.S. Every year, SARS rejects 90% of all Vat Registrations. Don't become a statistic