Navigating VAT Registration Requirements: What You Need to Know

VAT Registration Requirements - what you need to know

When it comes to VAT registration requirements, it is imperative that a small business or company must be fully aware of its VAT obligations as well as the implications should it not be VAT registered.  To better understand the requirements surrounding VAT registration, Go Business would like to share relevant information and tips to alleviate any concerns that you may have.

Knowing More about Value-Added Tax

At Go Business, we know that staying informed about VAT registration requirements can save you many hassles down the line. Before identifying the requirements to be VAT registered, it is necessary to know what VAT is as the first step to completing a successful tax return. Any services or goods that are supplied to another person or entity, whether for profit or not, has a tax levied against it, referred to as value-added tax (VAT), at a rate of 15%.

VAT Registration Requirements for Companies

The amount of VAT payable is based on your business’s annual turnover, often referred to as a tax threshold. VAT registration for companies with a turnover of over R 1 million in a consecutive 12-month period is compulsory. As standard VAT is charged on most goods and services, we would like to caution you that these requirements also apply if you have a written contractual obligation where the value of the taxable supplies that will be made in 12 months exceeds or will exceed R 1 million. At Go Business, we will ensure that your company’s tax registration is completed well within 21 business days of the turnover being or going to be exceeded.

Small Business VAT Registrations

VAT for any business making use of taxable supplies is mandatory. If, under certain circumstances, the value of your taxable supplies or services is under R 1 million or has exceeded R50 000 in the past 12 months, a voluntary registration can be applied for. With that in mind, you can confer with us to ensure that your business has been charging, paying and claiming VAT back so that you aren’t caught unawares. Below are some tips to assist you in ensuring your VAT registration requirements are compliant.

If, as a small business, you fail to register for VAT when you are required to do so, you could be held liable for penalties and high-interest charges.

If your business is registered for VAT, you must charge VAT on all taxable supplies made by your business.

A failure to pay SARS the 15% VAT charged on goods or services sold could lead to unnecessary penalties.

Claiming VAT back from other VAT-registered businesses from which you purchase goods or services can sometimes be overlooked by small businesses. These VAT credits can be used to offset any future VAT payables on taxable supplies made by your business.

“Go” with the Professionals in the Business; Choose Go Business

Navigating the process of registering for VAT as a small business or company as well as dealing with the paperwork and administration of filing returns can be done swiftly and efficiently by the experts. Leave your VAT and tax compliance in the qualified hands of the professionals at Go Business. We offer Accounting and Business services streamlining your operations with superior execution, freeing up your time to focus on what matters most – your business’s growth. Contact us and let us address your business’s VAT and taxation needs.


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