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What's a representative Vendor?

by , 04 March 2014
Vat law talks a lot about 'a representative Vendor', but do you know what the law means by this? Read on to find out so you'll comply with the Vat Act.

Everything you need to know about a representative Vendor

According to the South African Institute of Chartered Accountants (SAICA), every vendor is required to appoint a representative vendor who will take responsibility for the duties imposed by the Vat Act. He must be a South African resident and a natural person.

SAICA says that in the case of a company, the public officer generally acts as the company's representative vendor.

When we talked about foreign businesses and representatives in this article, we made it clear that having a representative doesn't mean you don't have to adhere to your Vat duties.

The same principle applies even if you're not a foreign company.

A company (or the proprietor of the business) will remain responsible for ensuring that the duties imposed by the Vat Act are performed, (i.e. the representative vendor will not be held solely responsible for failing to perform the said duties), says SAICA.

'Every member, shareholder or director who controls or is regularly involved in the management of a company's overall financial affairs can personally be held liable for the tax, additional tax, penalty or interest for which the company is liable.'

The best thing you can do is to ensure you adhere to your responsibilities and ensure your representative Vendor does the same thing.

Make sure your representative Vendor understands that the Vat Act requires him to do the following:

  • Apply for Vat registration on behalf of your business;
  • Furnish accurate and complete Vat returns;
  • Pay Vat due in respect of supplies and imported goods and services; and
  • Inform SARS of any change, for example, when he resigns, he must notify the Commissioner.

Now that you know what a representative Vendor is, make sure you notify the Commissioner when you appoint one. You must do this within 21 days after he becomes responsible for performing the duties under the Vat Act.

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