VAT registration is included in our comprehensive taxation services
South Africa’s tax laws may seem incomprehensible to those who have never truly dealt with it before. At MMS Group, we offer professional tax services suited to both individual and business requirements. Whether you require assistance with your Value Added Tax (VAT) registration, or you need help to meet tax deadlines, you can rely on our equipped and experienced team.
There are certain rules and regulations that need to be considered when a business is preparing for VAT registration.
You are required to register your business for VAT if the value of any taxable goods or services offered exceed R1 million within a 12-month period. By law, such businesses need to complete a VAT 101 - Application for Registration form and it needs to be submitted to a local SARS branch within 21 days from date of exceeding R1 million.
All VAT returns and VAT liabilities should be paid in alignment with the tax period that is allocated to your business. Most often, such payments are to be submitted on or before the 25th day after the indicated tax period has ended. Late payments can lead to harsh penalties and interest, so it is in your company’s best interest to stay compliant.
If your business’ monthly revenues in the past 12 months exceeded R50 000, you can register for VAT voluntarily.
When attempting to register your business for VAT, there are a number of requirements to be met. Some of these include:
- Your business should be a registered company – this refers to your company being registered with the Companies and Intellectual Property Commission (CIPC)
- You should have a business bank account – your business bank account should be solely for business transactions, devoid of any personal transactions
- Proof of trading history – you should be able to prove that your company has a trading history. Most often, invoices sent to clients for products sold or services rendered should suffice
- Proof of address – if you meet all the above requirements, you are ready to register your business. Upon submitting your registration form (known as a VAT 101), you should have a proof of address available
Documents required for the registration process include:
- A copy of your Certificate of Incorporation
- A copy of Trust Deed and Authority Letter
- A copy of your original ID
- Letter from bank or stamped statement from bank
- Recent invoices as proof of trade history
- Proof of address – this could be a recent municipal account or your rental agreement