Seven tax period rules for Vat vendors
SARS has different Vat categories and tax periods .This means not every Vat vendor has to pay Vat at the same time. So make sure you meet the deadlines of your specific Vat category to avoid the hassle of resubmitting your company's returns. Here are the seven tax period rules that'll ensure you're always compliant...
Once you're registered as a Vat vendor, SARS will send you notification with your Vat registration number and the tax period it expects you to submit your Vat returns in.
You're responsible to submit these before the due dates. So 'be organised, diarise these dates and stick to them to avoid penalties,' cautions the Practical Vat Loose Leaf Service.
Essentially, knowing the seven tax period rules will ensure your business is always compliant.
Tax period rules you need to know as a Vat vendor
If you've registered with SARS as a Vat vendor, the Practical Vat Loose Leaf Service advises you to ensure you know the following tax period rules...
SARS determines your Vat category for you. SARS will slot you in to one of its six existing categories when it reviews your Vat vendor application.
The Vat category you're in determines the tax periods you need to pay your company Vat in.
Your Vat category must change if your annual turnover changes.
It's your responsibility to notify SARS if your turnover changes. They'll then move you to the correct category and change your tax periods.
A change in tax period won't necessarily be backdated – you have to wait for SARS to notify you of your new tax period.
Tax periods always end on the last day of a calendar month.
Repeated late submission will result in an audit for your company.
Knowing these tax period rules will ensure you're always compliant and pay submit your company's Vat returns on time – every time.