Comply with this Vat registration rule if you split your business into two organisations
If you have a business that you split into two organisations, both need their own Vat
To help explain this situation, here's the answer to question RenSln asked on the AccountingandTaxClub.co.za
Q: 'We have a church and a school that amalgamated into the name of church. The rental income of both is accounted for on the Vat 201 (Vat return) which is in the name of the church. But the bank accounts are separate.
Recently, the church and the school have separated for business. The church's income is less than R1 million, so we're not charging tenants Vat. But the school is still using the church's old Vat number in its accounting. Should we register the school separately, for its own Vat number, or can we ask SARS to just transfer the Vat number from the church to the school?'
Dee Bezuidenhout, an expert on the club, answered saying the school needs its own Vat
number. To do this, RenSln must register it for Vat
But registration is a complicated process and, just because you did it once, doesn't mean it will go smoothly this time.
But you can help the process along by making sure you have these nine documents.
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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 for some companies.
Well it doesn't have to be a problem for you.
I have a solution to ensure you walk into a SARS office 100% prepared for your Vat registration
Here's how you can register for Vat
and get it the same day. We've put together a eleven-step action plan so you can get your Vat
When you register your separate organisation, have these nine documents on hand
When you apply to register as a Vat
vendor, submit a copy of the following supporting documentation with your VAT101 form:
A certified copy of your ID document;
A copy of the partnership agreement and articles of association;
Certified copies of your company registration documents;
An original letter from the bank where you hold your business account, confirming your account details, with the bank's stamp on it;
A business plan or proof of your turnover (invoices);
A letter from your accountant to confirm his appointment;
Proof of your business address (e.g. municipal account, telephone account or rental agreement);
The residential municipal account of the public officer; and
Bank statements since the bank account was opened, or for the last three months.
If you have all these documents ready and waiting, your Vat registration
will go smoothly.
This way, you can make sure both organisations can operate legally and comply with Vat
To find out more tips on how to make your Vat registration
seamless, check out The A-Z of Vat Registrations.