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

Further to my story on Oppenheimers I read this !!

I came across this article on fin 24.com


A good read from a knowledgeable South African.

I can't dismiss this, unlikely but far from Impossible !!

"A senior South African business figure totally dismissed concerns about the nationalisation of mines in South Africa on Thursday, soon after the ANC suspended a key proponent of the idea.

Well-known mining executive Boddy Godsell said the odds of the mines being nationalised were as remote as those of the Tea Party in the United States being able to abolish the US Federal Reserve.

"The youth league of the ANC has developed some unrealistic and unimplementable answers to some absolutely vital questions," said Godsell, the former chief executive of AngloGold Ashanti and a key member of South Africa's National Planning Commission.

The ANC on Thursday suspended youth wing leader JU JU, one of the leading proponents of the mine nationalisation idea, for five years, accusing him of causing a rift within the party.

"The centre of gravity in the ANC is not there... To do it with compensation, you'd be talking about trillions of dollars, which the South African government doesn't have," said Godsell.

"And to do it without compensation, you need to amend our Bill of Rights, for which you need a 75% majority in the South African parliament, and I can see absolutely no chance of that majority being achieved."

South Africa is one of the world's top platinum and gold producers and Malema's calls for nationalisation of the mines to reduce poverty and inequality have rattled investors both within and outside Africa's largest economy.

Godsell said the extent of poverty, unemployment and inequality in South Africa is unconscionable, but the answers being put forward by Malema and his supporters are untenable.

"It is not possible to build a properly cohesive society with these levels of economic exclusion, so that something needs to be done, to me, is absolutely clear," said Godsell, who nonetheless remains optimistic about the growth prospects of both South Africa and the whole continent.

Godsell noted that for the last decade-and-a-half Africa has recorded the highest continental growth rate in the world, admittedly from a low base. This should only improve, helped by mining, infrastructure spending and investment in a still small energy sector.

"In the next decade, I'd imagine that African growth rates as a whole are going to be 2 percentage points higher than developed country growth rates. And in the better countries in Africa... growth rates will be as much as 4 percentage points above average growth rates in America, Europe or Japan," he said.

"The burgeoning middle class in Africa is also going to be an important driver of demand. Investment follows demand - it seldom anticipates it."

Highlighting details from a report to be released by South Africa's planning commission on Friday, Godsell said the country is taking the necessary action to curb rampant unemployment.

REF : FIN 24



"In the long term, what South Africa needs over the next 20 years is growth at about 5%, and it could then reduce its unemployment rate from about 25% now to 6% by 2030," he said.

Read more

SA stocks, rand cheer Malema suspension

SA stocks, rand cheer Malema suspension: The JSE extended gains and the rand rose after news of the suspension of youth league leader Julius Malema, who has unnerved investors with his drive to nationalise mines.

SA's labour productivity at 40-year low

" Labour productivity fell to its lowest level in 40 years in October while there was no significant change in employment, says the latest Adcorp Employment Index.

"While no significant changes in all kinds of jobs - formal, informal, permanent and temporary - were seen during October, South Africa's labour productivity fell to its lowest level in 40 years," Adcorp said.

Labour productivity growth - a leading indicator of job creation - had been negative throughout 2011.

"This negative trend in labour productivity suggests that adding more workers does not necessarily translate into material increases in business output," said Adcorp labour market analyst Loane Sharp.

The index for October shows employment dropped slightly in the mining (-7.8 percent), construction (-7.0 percent) and manufacturing (-4.5 percent) sectors on an annual basis.

These losses were countered by job increases in wholesale and retail trade (4.4 percent) and financial services (three percent).

"Reflecting good underlying conditions in the consumer sectors, employment of clerks (+3.3 percent) and service workers (+2.7 percent) grew steadily, as did domestic work (+5.8 percent)."

For the first time this year, government job creation was essentially static, Sharp said.

Labour productivity was at its lowest level since the early 1970s.

"... One of the problems with the assessment of labour productivity in South Africa, is that it is measured according to 'output per worker' thus attributing all output to workers."

Sharp said it would be more accurate to consider capital equipment, technology, land, and other production factors in determining productivity.

Labour productivity growth in 2011 was negative, at minus one percent.

"This may well explain why, when real GDP rose by 6.6 percent after the 2008/9 global financial crisis, employment rose a meagre 2.6 percent," Sharp said.

"While GDP figures for the third quarter of 2011 are not yet available, we expect them to confirm the worrying declining labour productivity growth trend in this country."

Sharp said labour productivity is a critical indicator of employment.

"When adding workers yields greater output (ie when labour's value-added is positive), employers have an incentive to employ more workers," he said.

Adcorp was not expecting a sustained increase in employment until at least the second half of next year. "


REF : FIN24.COM

Shares drop as Italy nears brink

Shares drop as Italy nears brink: Asian stocks fell about 3% after soaring Italian borrowing costs stoked fears that the country's debt crisis will overwhelm its financial defences.


Singapore - Asian stocks fell around 3% on Thursday after soaring Italian borrowing costs stoked fears that the debt crisis in the euro zone's third biggest economy will overwhelm its financial defences, raising the risk of a break-up of the currency area.
The euro was steady, after suffering its biggest daily drop in 15 months on Wednesday, while industrial commodities such as copper and oil softened on worries of renewed recession. European shares were set to extend the previous day's losses.
Asian credit spreads blew out as the deepening crisis in Europe sapped investor appetite for risk, while safe haven assets such as Japanese government bonds were in demand.
"Whatever they come up with, it doesn't avoid a European recession," said Su-Lin Ong, senior economist at RBC Capital Markets in Sydney.
"The question now is just how deep it will be and whether this is going to bleed over into the banking system, because that is much more significant."


Finance sector hammered
Tokyo's Nikkei share average fell 2.9%, while MSCI's broadest index of Asia Pacific shares outside Japan lost 3.5%, with the financial and industrial sectors hammered hardest.
Hong Kong's Hang Seng Index, the Asian market that has tended to be most susceptible to European developments in recent months, was the biggest regional loser, falling 4.5% as banks such as HSBC led losses.
Financial spreadbetters expected Britain's FTSE 100 to open down 1.5%, while Germany's DAX and France's CAC-40 were called down 1.7%.
Italy has, for the time being, replaced Greece as the biggest source of concern in Europe's two-year-old debt crisis.
Italian 10-year bond yields rose above 7% on Wednesday, a level most market economists consider unsustainable for financing debt of more than €2 trillion.
A pledge by Italian Prime Minister Silvio Berlusconi to stand down failed to reassure bond markets that Rome has the will to bring its debts under control, and moves by two major clearing houses to raise the level of collateral needed for holders of Italian debt pushed the country near breaking point.
European and US stocks fell steeply on Wednesday in response, with Wall Street shares losing more than 3%. S&P 500 futures traded in Asia were up slightly on Thursday.

Too big to bail
Ireland and Portugal were both forced to seek aid soon after their 10-year bond yields topped 7%, but a rescue for Italy would be on a different scale and Europe's bailout fund is widely considered inadequate for the task.
The European Central Bank (ECB), considered the only institution capable of repelling the bond market attacks, bought Italian bonds in substantial amounts on Wednesday, but is reluctant to go further to force down yields.
"The markets were basically in a panic yesterday and the only thing that can give the euro at least a temporary respite is quick action from the ECB to lower Italian yields," said Koji Fukaya, chief currency strategist at Credit Suisse in Tokyo.
While many outside Europe are calling on the ECB to take a more active role, as other major central banks do, in acting as lender of last resort, Germany remains implacably opposed to what it views as a threat to the central bank's independence.
In a sign of the depth of fear gripping European capitals, EU sources told Reuters that French and German officials had held discussions about a eurozone split.
The single currency was steady around $1.3540, after tumbling around 2% on Wednesday.
The dollar was also steady against a basket of currencies, after surging in the previous session as investors scurried for safety, while yields on 10-year Japanese government bonds fell 1 basis point to 0.965%.
In Asian credit markets, spreads widened around 13 basis points on the Asia ex-Japan iTraxx investment grade index, a gauge of risk appetite.
Concerns about flagging demand knocked London Metal Exchange copper down 2.4%. US crude oil edged down to $95.70 a barrel, while Brent crude dipped a touch to around $112.26.
"We've moved from a low-growth scenario to one where there is a real threat of recession in the eurozone, and that's weighing on oil markets," said Ric Spooner, chief market analyst at CMC Markets in Sydney

Ref : FIN 24.com

Moody’s downgrades SA rating - negative

This Article I read from FIN24.com is so well written and covers the full story of the reasons for the downgrade there is nothing further I can add.
I have quoted this story:

Enjoy !!

"Ratings agency Moody’s downgraded the outlook on South Africa’s ratings on Wednesday due to worries that political pressure from unions and black voters wanting greater economic redress for the ills of apartheid could erode the country’s finances.

Moody’s put South Africa’s A3 rating on negative from stable and said there was “growing risk that the political commitment to low budget deficits and the ability to keep within current debt targets could be undermined by popular pressures”.

In its three-year fiscal policy framework unveiled last month, the Treasury said the budget deficit for this year would be higher than previously anticipated at 5.5 percent while weak growth would result in lower revenues.

The rand extended its losses after the outlook downgrade, falling more than two percent to a session low of 7.9720 against the dollar.
Government bonds also weakened, with the yield on the 2015 bond up 10 basis points to 6.47 percent while that on the 2026 note climbed 11.5 basis points to 8.295 percent.

South Africa’s fiscal accounts were in surplus for two years before the recession in 2009 but swung back into deficit as the government spent more to counter the effects of a global slowdown.

More than a million people lost jobs in the recession, and millions of the poor are becoming increasingly disillusioned with the ANC government , raising the risk of social instability.

Investors unsettled

Moody’s said the ANC’s “unwillingness to definitively reject demands from certain segments of the political spectrum for more activist policy interventions was harmful to South Africa’s economic prospects”.

Investors have been unsettled for two years by talk from the ANC’s youth wing to nationalise mines. The ANC has said nationalisation is not government policy but has not dismissed it out of hand.
Absa Capital said  a ratings downgrade was unlikely to ensue unless the political noise became a reality.

“Calls for a greater state involvement in the economy and for a larger push on redistribution are being made very loudly from some parts of the ANC sphere, but it remains far from clear as to what changes in broad policy, if any, might be agreed in the course of 2012,” it said in a note.

“We do not believe that a ratings -- rather than outlook -- downgrade is likely until more clarity on the outcomes of these policy debates is delivered.” "


REF: Fin 24.com 9/11/11

Why are the Oppenheimers selling De Beers interest & they leaving the ship (SA) ??

After reading up on this matter & listening to Mr Oppenheimer speaking about this on my Favourite financial show "MONEY WEB" on Friday I have other idea's

Diamond price was at it's highest a few months ago past 2008 price. July 2011

Now it has come down considerably since then.

Mr O said that this deal was done with Anglo's in the last 3 & 1/2 weeks ago.

The value was not based on prior values.

Anglo's have tried to purchase the family interest on a few occasion's.

"Nicky Oppenheimer, the De Beers chairperson who also represents the Oppenheimer family interests, said the decision to sell was tough."

How can a decision on this magnitude be made in 3 & 1/2 weeks

That for me was an indication that things are not what they seem.

Fin 24.com reports very interestingly:

" “The sudden decision by the Oppenheimer family to sell its 40% stake in De Beers to diversified global miner Anglo American $5.1bn (R40bn) has raised questions about the impact of nationalisation talk on investment.

Eskom chief economist Mandla Maleka said: “Anglo American has for years been unsuccessful in its attempt to buy the stake from the Oppenheimers.

One wonders whether the Oppenheimers are selling the stake due to commercial reasons or if there was pressure coming from certain quarters, like the nationalisation debate.” ”

The company has been run by the family directly for over 80 years.

Sir Ernest , Harry O and  Nicky O.

Between them De Beers was built into a global diamond empire that currently sells about a third of the world’s rough diamonds.

This has even caught the National Union of Mineworkers (Num) off guard,they are scrambling to meet with Mr Oppenheimer on why his family was pulling out.

Num has issues with the family on Social Responsibility over the years and this to them makes it even worse.

The family divesting shows a lack of confidence in the local mining industry considering they played a big role in developing the industry.

Even Num feel that "Nationalisation issues" are the order of the day.

I feel that, ANCYL & running of the country may be the reasons.

The Family have been over the last five years reducing interests in Anglo's which was also started by Sir Ernest & JP Morgan. Left 1.9%

Per MD of the family investment company E Oppenheimer & Son Group the family has “no intention at this stage” of further reducing its holding,

This needs to be seen.

If the money is not directed back into this country in one large investment then it will have no effect on the currency according to the IDC.

If it comes slowly it will not have any effect on the rand.

I think that this action shows the chickens are not coming home to roost & If these people who have always backed & I feel still do to a certain respect one must sit up & think seriously !!