|Register for VAT|
You must register your business for Value Added Tax (VAT) if the total value of taxable goods or services is more than R1 million in a 12-month period, or is expected to exceed this amount.
A business may also register voluntarily if the income earned in the past 12-month period exceeded R50 000.
VAT is an indirect tax on the consumption of goods and services in the economy.
VAT is levied at the standard rate of 14% on the supply of goods and services by registered vendors. There is a limited range of goods and services which are subject to VAT at the zero rate or are exempt from VAT.
Your VAT registration will only be cancelled if the Commissioner is satisfied that your taxable supplies do not exceed R1 million or that you have discontinued the business.
You must notify South African Revenue Service (SARS) within 21 days of discontinuing your business.
Your business will remain liable for any outstanding VAT debts while it was registered as a vendor.
16 Sep 2013