|VAT Registration and VAT Return Submission|
|VAT Return submittion, bi-monthly|
Who must register for VAT
Companies with the turnover that exceed R1 million in the 12 month financial period are required by Law to register for VAT. Companies with the less turnover can also do voluntarily registration provided their turnover is at least more than R50 000.00 or there is some financial transactions movements in their business banking account.
What happen after VAT registration
SARS will issue a VAT registration number, that must appear on all invoices issued, these invoices must also start adding 15% VAT on their services and products costs.
Input and Output
Input VAT – is the VAT amount you paid when incurring expenses while operating your business, this VAT amount can be claimed back from SARS, not that not every input VAT can be claimed, this is a list of what is allowed and not allowed to be claimed.
Output VAT – is the VAT amount charged by the company when invoicing its clients. This VAT amount belong to SARS. The difference between this among the Input VAT amount will determine whether you pay SARS or you will be refunded by SARS, which means you paid too much Input VAT.