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If you outsource your website development to a foreign company, you could have a serious VAT issue

by , 03 May 2016
Dear reader,

Do you have a foreign company developing your website in SA? Do you pay VAT on their fees?

I bet you don't.

In fact you're probably thinking – 'since it's a foreign company, there's no VAT on the charge…' You couldn't be more WRONG!
SARS will come after you for the VAT… But wait! There's an exception in this instance.
Your finance team can't afford to miss this!
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This 2-day VAT Masterclass will help you understand everything you need to know when it comes to calculating all your VAT correctly and complying with all the recent changes to the VAT Act.
Make sure your business positioned for VAT success in 2016 by sending your finance team to the VAT Masterclass taking place on the 11th - 12th of May in Johannesburg, 16th – 17th of May in Cape Town and 18th – 19th of May in Durban.
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One instance when you won't have to pay VAT for services from your outsourced foreign company
Your foreign supplier doesn't need to register for VAT if the cost of his services in any month are less than R50 000. He won't need to account for output tax (Sections 7(1)(a), 23(1A) and 72 of the VAT Act). You won't have to pay VAT either.
Let's look at an example…
ABC Printing outsources their website development to ITRO Services in Romania. Their bill is R45 000 for the month. ITRO Romania doesn't have to register for VAT because they're below the VAT registration threshold.
But what happens if ITRO Romania increase their services and fees to R65 000. Read on to find out…
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Take advantage of this legal loophole
If ITRO Romania's invoice increases to R65 000, ABC Printing can ask them to split the invoice into 2 payments, over different months. This way, they remain below the R50 000 registration threshold. And no one has to pay VAT.
But this is just one instance. There's one more thing your supplier can do so you don't have to pay VAT to SARS….
Oh dear, it seems I've run out of space… But I don't want you to pay over any more VAT than you need to!
So visit the VAT Masterclass where Dee Bezuidenhout will give you this legal loophole and 5 others you can take advantage of today. Dee used to work at SARS as a VAT auditor and knows all the legal loopholes you can use to decrease your VAT bill today. She'll give you the inside scoop that SARS will never tell you about. With over 24 years' experience in VAT, she's the best person to bring you this intensive VAT training. Click here to get on her list for the upcoming workshop.

P.S. Claim 13 CPD points when you attend the VAT Masterclass. Secure your seat now.

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