Is your Turnover for the year less than R1 Million?

Taxpayers with turnover levels below R1 million have been granted two options:
retain their status quo, i.e. do nothing; or

• retain their status quo, i.e. do nothing; or
• deregister as VAT vendors.

As far as deregistration is concerned, taxpayers have been given two further options:

• Register as a micro business and in future be taxed in terms of a new Turnover Tax for Micro Businesses (presumptive tax regime) – this will automatically deregister you as a VAT vendor (see section on Turnover tax for Micro Businesses if you comply in this regard); or
• Standard deregistration as a VAT vendor process with SARS on the basis of the turnover being below the new threshold of R1 million for the 12 month period.

Standard deregistration as a VAT vendor process with SARS on the basis of the turnover being below the new threshold of R1 million for the 12 month period.
Whichever option is exercised, cognisance should be taken of the consequences of deregistration to ensure that informed decisions are taken – there are both benefits and disadvantages to deregistration for VAT purposes. Kindly contact us to complete a full analysis to ensure that you exercise the best option.

Should you require any further information, please do not hesitate to contact us.