You could already be a vendor
Anyone who's registered for Vat is a vendor under the Vat Act. But, did you know that 'vendor' also includes anyone who's required to be registered (Section 1, the Vat Act).
Yes! So as soon as you reach your threshold, SARS treats you as a Vat vendor. It starts calculating the output tax you should be paying over. When you do register it's waiting for all that output tax. And as if to add insult to injury, it slaps you with fines and penalties for the late outstanding payments (you didn't even realise you had to pay). This could cripple your business!
Every person who carries on an enterprise
becomes liable to register for Vat at a certain point. And SARS won't accept any excuses on the matter. The onus is on you to know when.
But first, you need to make sure you run an enterprise. Read on to find out if you do.
How do you know if you run an 'enterprise'?
Vat registration has never been this easy
Do you know:
· When you're eligible to apply for Vat;
· How to correctly fill in your VAT101 form;
· What supporting documents you need to apply; and
· Your Vat responsibilities while waiting for your Vat number?
We'll give you answers to all this and more. Click here…
Simple! If you carry on any activity continuously or regularly, where you supply goods or services to others for a consideration, you run an enterprise. And it doesn't matter if it's for a profit or not.
You need to look back and see if in the past 12 months, you've supplied taxable goods or services, from all your enterprises, exceeding R1 million. If you have, you've met the compulsory Vat registration threshold and you need to register. But there's more…
You also need to look forward. If you have a written contract, or invoices to supply taxable goods or services in all your enterprises for at least R1 million in any 12 month period, you also have to register for Vat.
You may have already reached your threshold… Make sure to add up all the taxable supplies from all your enterprises put together.
There you have it. Now you know when you must
register for Vat, so you don't have to face additional penalties and fines from SARS.
For an 11 step action plan you can follow to register for Vat and get it the same day, simply follow this link...
P.S. Did you know that SARS has to refund your Vat within 21 business days? For more tips like this and all the info you need to help you take control of your Vat, check out the Practical Vat Loose Leaf