Keep up with these new Vat changes before you get left behind
The Government has been threatening new Vat regulations for a while now. But come the 1st of June 2014, it'll make good on those threats. If you don't keep up to date with the changing regulations, you could make some serious mistakes. Make sure you're up to date and that you understand the changes and avoid getting in trouble. Here's what you need to know...
The new Vat regulations explained
Nothing sounds scarier than new tax or Vat regulations. You may hear that and panic because you think you're going to have to give SARS more money.
Rather worry less and read more, because the changes may not even affect you. According to Tax News' the new Vat regulations all boil down to this:
Overseas companies that provide South African's with online services will have to start paying Vat!
This only comes into effect value of their sales to South African businesses is more than R50 000 or $4 495.
These services include the following:
• Educational services;
• Games and games of chance (online gambling);
• Information system services;
• Internet-based auction services;
• Maintenance services
These new regulations were implemented on the 1st of April, but overseas companies who need to register for Vat have to do this by the 1st of June.
As we've explain here
, SARS has made this Vat registration process very simple. If you don't know how to register for Vat you just complete and email the Vat form to SARS for registration. They then take 72 hours to process the application.
But what do these new regulations mean for South African businesses?
Think Vat doesn't apply to your payroll?
How the regulations impact South African businesses
If you're a South African business then this new regulation doesn't really affect you. The only time it'll affect you is if your use an online service that isn't included in the regulations. In this case you're still responsible for the Vat on those services.
So don't panic, these new regulations aren't going to rock the tax and Vat boat that much.
Ps. Legally pay less tax
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