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Starting a new business? Here are three forms you MUST submit when applying for Vat registration

by , 09 January 2014
There's a lot of paperwork involved in setting up and running a business in South Africa. If you leave something out, there are severe penalties. Make sure this isn't the case if you're starting a new business. Here are the three forms you must submit when you apply to SARS for registration as a Vat vendor.

Starting a new business and aren't sure of what to submit when applying for Vat registration?

Here's an answer for you…

There're three forms you must submit when you apply to SARS for registration as a Vat vendor:

  1. VAT101 – Value-added Tax: Application for Registration.
  2. VAT127 – Business plan for purposes of compulsory Vat registration.
  3. VAT130 – Value-added Tax: Notification of appointment as bookkeeper/external auditor/ accountant.

You can contact SARS for more information regarding the VAT127 and VAT130 forms.

But that's not all.

Use this checklist to ensure you supply the right supporting documents when applying for Vat registration

The Practical Tax Loose Leaf Service says you must include the following supporting documentation when you apply for registration as a Vat vendor:

#1: Certified copies of the ID or passport of the person responsible for submitting Vat returns, or the director to whom such person reports (referred to by SARS as the 'representative vendor').

#2: One of the following documents confirming banking details:

  • An original cancelled cheque; or
  • An original (or certified copy) of a bank statement where the name of the account holder, branch number and account number are clearly shown; or
  • An original letter from the bank (on an official letterhead) confirming the name of the account holder, branch number and account number.

#3: If the bank account isn't in your name, you must complete a VAT119i form.

#4: A copy of any documentation that'll confirm the address at which your activities are carried on (or the head office, if applicable). Acceptable documents include a utility bill, municipal rates bill, body corporate levy account or telephone account.

If you're leasing premises, you must get a letter from the landlord.

#5: A completed VAT130 form, together with a letter of appointment or engagement letter from the bookkeeper, accountant or external auditor. In the case of a company, the CM31 form on which the auditor consents to appointment is acceptable.

Warning! SARS can refuse an application for Vat registration if you or any of the listed directors and officers has returns or outstanding amounts.

Well there you have it. If you're starting a new business, these are the three forms you must submit to SARS when applying for Vat registration.

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