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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.
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.
The new definition of an enterprise
Your business is an enterprise if you carry on any activity which:
In addition, SARS has recently added the following businesses/entities under the definition:
Supplies goods and/or services;
Is on a regular or continuous basis;
Operates inside SA or partly inside SA (this now includes foreign businesses);
Receives a reward in exchange for the supplying of goods and/or services; and
Makes a profit or not.
Business start-up or winding down activities;
Commercial accommodation (e.g. hotels, B&B's);
Certain government departments which the Minister of Finance has said must register for Vat;
Share block companies;
Businesses supplying telecommunication services to any person, who uses those services in SA;
Electronic services; and
Underwriting insurance business by Underwriting Members of Lloyd's of London in SA.
If your activities meet any of the above 12 requirements, for Vat purposes your business is an enterprise (Section 1 of the Vat Act). Read on to find out if SARS is expecting your Vat registration...
When you're liable register for Vat
You must register for Vat if you're operating an enterprise and:
Your turnover in the last 12 months exceeds R1 million; or
You have a contract or an agreement that shows your turnover will exceed R1 million in the next 12 months.
If you haven't done so already, it's compulsory for you to register for Vat. And you can't delay or you'll face backdated penalties from the time you reached your threshold. And, you could also face jail time.
But, if you're operating an enterprise and your turnover is R50 000 in the last 12 months, you can voluntarily register for Vat. In this case, it's not compulsory until you reach the R1 million threshold.
There you have it. Now you know what the new definition of enterprise is, you can register for Vat when you meet the criteria.
P.S. If you want to
calculate Vat efficiently and take advantage of little known, legal, Vat saving strategies, simply follow this link...