The Wealth Masters Club has seen a surge of business owners joining the club over the last few months following the release of our hugely-successful “Make Your Business Tax-Proof and Crash-Proof” webinar. So, we thought now would be a great time to delve into a topic that many SME business owners may be asking themselves – should I be registered for Value Added Tax (VAT)?

VAT registration can be a bit confusing – ok, very confusing actually, but fear not! We’re here to make it easy and fun to understand. So grab a cup of coffee, put on your favourite music, and let’s dive into the world of VAT!

First things first, who can register for VAT?

Well, anyone who is carrying on an enterprise can register. And when we say “anyone,” we mean it! It doesn’t matter if you’re an individual, a company, a partnership, a Trust, or even a municipality. As long as you’re involved in some kind of continuous or regular activity where you supply goods or services to others for a consideration (money), you’re in the VAT game!

But wait, there’s more!

Some specific groups of people are also included in the VAT party. We’re talking about public authorities, welfare organizations, share block companies (with a few conditions), implementing agencies of foreign donor-funded projects, intermediaries, and non-resident suppliers of electronic services. It’s quite a diverse crowd, isn’t it?

And Vat Registration doesn’t have to be a thorn in your side with Destinata’s exceptional accountants who will assist you all the way. They will gather and request the necessary information from you and upload everything online in a blink of an eye.

When is VAT registration compulsory? The Million-Rand question (quite literally):

If the value of taxable supplies you make or will make in any consecutive 12-month period exceeds R1 Million, then you must register for VAT. It’s like winning the VAT jackpot! But hey, don’t worry if you’re not there yet. Voluntary registration is also an option, especially if your taxable supplies have exceeded R50,000 in the past 12 months. It’s like SARS has given you a VAT VIP pass!

Now, let’s talk about the VAT liability date.

This is the date when you become responsible for charging VAT on your supplies. For voluntary registrations, the liability date is set according to your application date. No time travel is allowed here! If you want to backdate your voluntary registration, you’ll need to provide supporting documents to justify your request. Compulsory registrations have a six-month time limit for backdating using the SARS eFiling system. Beyond that, it’s time to make an appointment with a SARS branch and bring all the necessary paperwork. Remember, the VAT liability date must be between September 1991 and three months into the future. No time machines allowed!

So there you have it, folks! VAT registration doesn’t have to be a headache. Whether you’re in the compulsory or voluntary camp, the important thing is to understand the rules and make the right decision for your business.

But before you go, at the beginning of this article, I mentioned our webinar that shows business owners how they can make their business crash-proof and tax-proof (yes, it is ACTUALLY possible) but only with the right team, skills and structure. If you haven’t watched our webinar yet, firstly, where have you been hiding? Secondly, you can register for free to watch it by clicking on the button below. It’s a short webinar, only 25 minutes long, but it will change the way you do business forever. Give it a watch, and then we invite you to join us at our next full-day seminar in your town to get the whole picture of how you can ultimately pay ZERO tax.