A few things to keep in mind regarding a VAT 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.
A business may register voluntary for VAT if the taxable supplies exceed R 50,000 over a period of 12 months. Threshold for commercial properties is R 60,000 per annum.
If a person omits to register on time, turnover will be deemed to include VAT.
APPLICATION PROCEDURES 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 or a rental agreement of the entity. No other proof of business adress will suffice.
* Original banking details confirmation (Original letter from your banker aswell as a original stamped statement from the bank)
* Latest three months bank statements.
* Lastest months invoices to confirm income.
IMPORTANT TO KEEP IN MIND
With every application a SARS official will do a interview with yourself as the representative vendor OR your tax consultant on your behalf. In the interview the official will ask you a few question to the type of business relating to the application.
A report will also be pulled of all directors and related companies of such directors. If any information show non-compliance, SARS will not accept the application.
As tax practitioners we have the advantage of making an appointment for a spesific day and time, which ease the process and application.