VAT, also known as Value Added Tax, is paid by all South Africans each day. It is an indirect tax that is not deducted directly from your income, but is levied on the goods or services that you offer. It is mandatory for a Company to register for VAT if their income earned in a twelve month period exceeds or is likely to exceed R1 million.
VAT Registration (Requirements)
– Company tax number required
– Completed and signed VAT application (VAT101) form
– Certified copies of registration document (COR14.1, COR14.1A, COR14.3, COR15.1A)
– Certified copies of identity documents of the two main directors
– Original signed and stamped letter from bank confirming business bank details (no internet printouts)
– Certified copy of identity documents of the representative employer
– Recent original business municipal account
– If the property is leased, a certified copy of the lease agreement
– Recent original residential municipal account of the Individual or representative employer
– Completed and signed confirmation of residential address form CRA01 on SARS website
– Copy of financial information listed as per part four of the application form to determine taxable supplies (no cash flow projections)
(e.g. bank statements showing deposits and copies of invoices issued for last 3 months showing R 50,001 or more)
- The VAT application must be submitted in person by the individual, partner, representative vendor or registered tax practitioner.
- If the VAT application form is posted/dropped into SARS mailboxes at their branches, the registration process may take much longer.
- Vat registration may only be applied for in respect of a tender, once the tender has been awarded
- COMPULSORY REGISTRATION: Any business who’s turnover exceeds or is likely to exceed R 1 million per annum.
- VOLUNTARILY REGISTRATION: Any business who’s turnover is at least R 50,000 but less that R 1 million per annum
Minimum requirements for a VAT registration:
- A sole proprietor, registered Pty, CC
- Verified Tax Registration number – Your company needs to have a Tax registration number issued by SARS
- Opened business account
- SARS E-filing account (can assist with the set up for R 690)
- Certified copies of ID for all directors
- 2 months in a row of sales and invoices to a minimum of R 4500 per month
OR
- Signed purchase order from a client in excess of R 50 000, or
- If your company is newly registered, sales and invoices in 1 month totaling R 50 000, money must have gone through business account.
If you still need to register a company with a VAT number, our VAT Package would be perfect for you!
DOCUMENTS REQUIRED:
- CERTIFIED COPIES OF THE DIRECTORS IDS
- PROOF OF ADDRESS OF THE BUSINESS
- ORIGINAL BUSINESS BANK STATEMENTS
- INVOICES
- COMPANY REGISTRATION DOCUMENTS
- PERSONAL PROOF OF ADDRESS OF THE COMPANIES PUBLIC OFFICER
How do I get a VAT number in South Africa?
VAT is an indirect tax on the consumption of goods and services in the economy. Submit the registration form to your local SARS branch within 21 days from date of exceeding R1 million. VAT is levied at a standard rate of 15% on the supply of goods and services by registered vendors.
What do you need to register for VAT in South Africa?
It is mandatory for any business to register for VAT if the income earned in any consecutive twelve month period exceeded or is likely to exceed R1 million. Any business may choose to register voluntarily if the income earned, in the past twelve month period, exceeded R50 000.
How long does VAT registration take in South Africa?
Around one month, Once you have registered for VAT, either online or using the paper form VAT1, HMRC states that you can expect to receive your VAT registration certificate, which contains your VAT number, in around one month from the date of submission. It expects to process 70% of applications within just 10 working days.