Taking the Eish out of doing a VAT Application with SARS.

All business's who provide a Vatable Service of over R1 000 000 per Anum need to register for VAT.

Also importers who import goods into SA and want to claim back the VAT on the goods imported need to apply to be a VAT vendor to claim the input VAT.

Remember VAT on imports is not only charged at 14% input & can be greater depending on the goods imported.

So to benefit from that one should register.

The application process is quite involved and one should get a person who deals with this to handle it for you. SARS have made the process very transparent and involved to ensure not fraud & corruption.

It will be Money well spent to get it done correctly.

Before doing the application the entity must be registered for Income Tax.

Below find a list of what is required for the various entities :

• Individual Copy of the identity document of the individual
• Copy of the identity documents of the 2 most senior members / directors / shareholders / trustees
• Partnership Copy of the identity documents of the 2 most senior partners of the partnership
• Close Corporation / Company / Trust :         Copy of certificate of incorporation
• Association not for Gain / Welfare Copy of constitution / Organisation / Club : Copy of Constitution
• Letter of Authority : If Application is presented by registered Tax Practioner
• Copies of bank statements for the past three months but not older than one month from application
• Copy of financial information listed as source in part four to determine value of tax able supplies      (no cashflow projections will be accepted)
• Recent copy of the Business Municipal account
• Recent copy of the Residential Municipal account of individual, partner or representative vendor
• Company / Trust fund VAT 12 1( Application for category E) if tax period is selected to be category E due to the main activity

Documents submitted with all applications :

• Cancelled Cheque of original letter from Banker
• Copy of ID or passport of Rep Taxpayer
• Business Municipal Account or Residential Municipal Account of Rep Tax payer for other entities.
• Copies of the bank statement not older then 3 months
• Copy of Financial info to show vatable supplies.

The important issue is :

Registration for VAT is area restricted and therefore you will be required to present yourself in person to the Branch office where the business is situated for validation of information. Only applications which is presented in person by the individual / legal representative vendor / authorised
registered tax practitioner will be accepted. All other applications will be rejected.


Please note all the above or one will have problems with the registration.
One will then have problems as the documents will be out of date and one will have to start the process again from scratch.

Need help contact me :

Steven Morris Chartered Accountant (SA)
3 Bickley Road
Sea Point
Cape Town
8005

Mobile :+27 83 943 1858

Facsimile : 0866 712 498
E-mail : steven@global.co.za