Should a vendor wish to apply the zero rate on goods and services exported, in addition to a valid tax invoice, certain other documentation needs to be obtained and retained by the vendor in order to substantiate the entitlement to apply the zero rate. The documentation required is laid out in SARS Interpretation note 30, […]

Voluntary VAT registration – New requirements for registration A person carrying on an enterprise which has not made R50 000 in taxable supplies is allowed to register for VAT, if there is a reasonable expectation to exceed R50 000 in taxable supplies within the 12 month period from date of registration. In order to register, […]

As Sage One Advisers, we have been invited to extend the following Sage One promotion to our customers. Should you wish to move your accounting system online (onto the cloud), we can assist you with the process of obtaining the promotional discounted amount of R120 per annum (R10 per month) for your first year (2015 normal price […]

Article written by:  Fatima Bapukee | Accounting Manager | MD Accountants & Auditors Inc. Pre 2008 you would have had to be registered for VAT if your turnover was over R300 000 per annum. When SARS introduced the increase in the threshold to R1 million, many entities deregistered as VAT vendors. With the introduction of Turnover Tax, many […]

The general principle is that input tax may not be claimed on the goods and services acquired to the purpose of entertainment. Various exceptions apply to this general rule. One of the exceptions to the basic rule is that where food and beverages (being entertainment as defined) are supplied to passengers or crew members in […]

This amendment was necessitated by a perceived VAT avoidance arrangement/interpretation. The background to the amendment is that where share block companies are converted into sectional title ownership or the actual property is sold to the holders of the share block shares, the transaction should be ignored for VAT purposes (it should be a non-event for […]

The interaction between the VAT and the Customs and Excise Act necessitated this amendment. The background to the amendment is that where goods are abandoned or destroyed under customs supervision, such goods are deemed by the C&E Act to have been cleared for home consumption prior to its abandonment or destruction. This has the implication that […]

This amendment is aimed at avoiding the time of supply being triggered for the full consideration in respect of transactions where the ultimate value of the supply cannot be determined up-front. This rule already previously existed for the supply of goods. It has now been extended to the supply of services. The new rule will […]

The amendment impacts on the tax period in which input tax on imported goods may be claimed. Prior to 1 April 2014 input tax could be claimed in the tax period in which goods were cleared for home consumption provided that the VAT was paid to SARS by the time that the VAT return in […]

With effect from 1 April 2014 the activities of a HOA no longer qualify as taxable supplies. HOA’s must accordingly deregister as VAT vendors. The consequences of deregistration are as follows: The HOA must account for output tax on the value of any assets or rights held immediately prior to deregistration. The amount of the […]