INFORMATION ON A VAT REGISTRATION

A few things to keep in mind regarding VAT registrations.

COMPULSARY REGISTRATION

A business is liable to register as a vendor if the value of taxable supplies exceeds or is expected to exceed R 1 million (From 1 March 2009). The threshold was increased from R 300,000 to R 1 million on 1 March 2009.

VOLUNTARY REGISTRATION

A business may register voluntary for VAT if the taxable supplies exceed R 20,000 over a period of 12 months.This threshold will be increased to R50,000 with effect 1 March 2010. Threshold for commercial properties is R 60,000 per annum.

DEEMED SUPPLIES

If a person omits to register on time, turnover will be deemed to include VAT.

APPLICATION PROCUDERES FOR VAT

Application form for VAT is a VAT 101

You will need the following information:

* Copy of certificate of incorporation (Closed corporation or a company)

* Copy of Trust deed & Authority letter (Trust)

* Copies of ID's of all directors / members / trustees

* Recent copy of the business municipal account

* Original banking details confirmation (Cancelled cheque, original bank statement or original letter from your banker)

* Latest three months bank statements.

* Invoice to confirm income.