VAT Changes

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, the person must be able to satisfy SARS that one or more of the following circumstances applies as at date of application for registration:

For vendors that have made taxable supplies preceding the date of application for registration, the requirements are as follows:

  • Taxable supplies made for only one month preceding application for registration:
    – Prove that the value of taxable supplies made for that month exceeded R4 200
  • Taxable supplies made for more than 2 months preceding application for registration but not exceeding 11 months:
    – Prove that the average value of taxable supplies made per month exceeded R4 200 per month

For vendors that have not made taxable supplies preceding the date of application for registration, the requirements are as follows:

  • The vendor must have a written contract, in terms of which the person is required to make taxable supplies exceeding R50 000 in the 12 months following the date of registration

                                                                                                                                                OR

  • The vendor must have entered into a finance agreement with a bank, specified credit provider, designated entity, public authority, non SA resident or any other person who continuously or regularly provides finance, wherein finance has been provided to fund the expenditure incurred or to be incurred in furtherance of the enterprise, and the total repayments in the 12 months following the date of registration will exceed R50 000

                                                                                                                                                OR

  • The vendor has proof of expenditure incurred or to be incurred in connection with the furtherance of the enterprise as set out in a written agreement or proof of capital goods acquired in connection with the commencement of the enterprise and proof of payment or extended payment agreement evidencing payment has either exceeded R50 000 at the date of application for registration or that will in any consecutive period of 12 months beginning before and ending after the date of application, exceed R50 000; or will in the 12 months following the date of application for registration exceed R50 000.

Please do not hesitate to contact us to assist with your VAT registration requirements.

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