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R4 200 a month in taxable supplies is all you need to register for VAT since 12 October 2015

by , 03 November 2015
I'm sure by now you know that if your business has reached or is likely to reach a taxable turnover of R1 million in any 12-month period, you have to register it for VAT.

But what you may not know is as of the 12th of October 2015, SARS made a change to the VAT Act regarding voluntary registration. Previously you could register voluntarily once you exceeded taxable turnover of R50 000 in any 12-month period. Now SARS has amended this. Let's see how...

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I have a solution to ensure you walk into a SARS office 100% prepared for your VAT registration.
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The new changes to voluntary VAT registration

SARS recently introduced new VAT regulations for vendors who want to register for VAT, but haven't yet made taxable supplies exceeding R50 000 per year.

So, if you're in this category, you need to meet at least one of these criteria by the date you apply for your VAT registration.
Voluntary registration
1. If you've you made taxable supplies for more than 2 months, but less than 11 months - You must prove that the average value of your taxable supplies before you apply for VAT registration exceeded R4 200 per month.
2. If you've made taxable supplies for only 1 month before applying for registration - You must prove that the value of the taxable supplies exceeded R4 200.
Read on for the last 3 criteria…

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Here's everything you need to register and comply with VAT

3 Other criteria for the new rules for voluntary VAT registration

3. If you haven't made any taxable supplies at all - You must have a written contract showing you'll make taxable supplies exceeding R50 000 in the 12 months following the date of your registration.
4. Have you entered into a finance agreement with someone who regularly provides finance for your business, such as a bank or other credit provider? If you use this finance for expenses in the furtherance of your enterprise, and the total amount you have to pay back in the 12 months after your registration will exceed R50 000.
5. Do you have proof you've spent or will spend an amount that will exceed R50 000 for your enterprise start up, either at the date of application for registration, or 12 months after your application?
If you meet any of these requirements, you can register voluntarily for VAT on a VAT101 application form.
P.S. Do you know how to submit your VAT return once you're registered? This guide will take the guess work out of how to fill in your VAT201 form correctly...

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R4 200 a month in taxable supplies is all you need to register for VAT since 12 October 2015
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