Amendments to the VAT Act – New Registration Rules
AMENDMENTS TO THE VAT ACT
The new registration rules
Effective 1 April 2014 the following rules apply:
• Where the actual value of taxable supplies has exceeded R1 million in any 12-month period (previous rules unchanged).
• Where any person has entered into an agreement in terms of which they will be obliged to make taxable supplies with a value in excess of R1 million in the next period of 12 months (new rule).
• Where a person conducts an enterprise of supplying electronic services with a value in excess of R50 000 (the VAT Act is not clear as to the time frame in which the value of supplies must be achieved) (new rule).
• Where the actual value of taxable supplies has exceeded R50 000 in any 12-month period (previous rule unchanged).
• The value of taxable supplies is likely to exceed R50 000 in the next period of 12 months.
– If registered on this basis, must account for VAT on the payments basis until the R50 000 threshold is achieved
– Regulations will be issued to govern this option (new rule).
• Due to the nature of activities a person will only generate taxable supplies in the future
– Should include vendors conducting farming, mining, construction and similar activities where the activity will only generate consideration in the future;
– Government Notice to be issued to notify the qualifying activities (rule unchanged except for the reference to the Government Notice).
Information courtesy of: LexisNexis South Africa
All material subject to our Legal Disclaimers.