HOW THE VAT INCREASE AFFECTS YOUR BUSINESS
Consumers and suppliers have by now had an opportunity to familiarise themselves with the increased Value-Added Tax (VAT) rate of 15% since 1 April 2018. There are however many technical considerations related to the increase that remain unclear. One such an uncertainty is with regards to deposits paid prior to the effective date of the […]
VALID TAX INVOICE REQUIREMENTS FOR VAT VENDORS
When making a purchase for your business, you should always ensure you receive a valid VAT invoice. This enables you to claim input VAT from SARS. With the change in VAT rate from 14% to 15%, VAT has come under the spotlight. This brings more focus on VAT compliance and more specifically on when we […]
NON-EXECUTIVE DIRECTORS – HAVE YOU REGISTERED FOR VAT?
SARS recently published two Binding General Rulings (number 40 and 41) that have put the tax treatment of non-executive director’s fees to bed, which will come in effect on 1 June 2017. As it stands, a Non-Executive Director (NED) earning more than R1 million in director’s fees in any 12-month period should register for VAT. […]
EXPLAINING ZERO RATED VAT
Value-Added Tax, or VAT, is currently typically charged at 14% on all taxable supplies of goods or services rendered by registered VAT vendors. Taxable supplies exclude exempt supplies, such as providing financial services, residential accommodation or educational services (see section 12 of the Value-Added Tax Act, 89 of 1991). Where a VAT vendor makes exempt […]
PROVISIONAL TAX FOR INDIVIDUALS: DID YOU KNOW?
Provisional tax is not a separate type of tax but pre-payments on income tax for a specific tax year. The aim of provisional tax payments is to help taxpayers to fulfil their tax responsibilities by spreading tax payments over a tax year. After SARS has assessed a taxpayer for income tax, the provisional tax payments […]
VAT Recons: Why they are essential!
This article serves as a reminder to do your VAT Turnover Reconciliation before submission of the last vat return. The VAT turnover reconciliation aims to reconcile turnover as per the Annual Financial Statements (AFS) to the total output tax declared over the same period as per the VAT201’s (monthly VAT returns). The reconciliation can be […]
The importance of good trust administration
The South African Revenue Service (SARS) Strategic Plan (2012/13 – 2016/17) highlighted the government’s concern that there was a “compliance risk posed by high-net worth individuals and the use of trusts to conceal their income.” Some examples of SARS’ trust reform programme over the last few years include: April 2012: SARS launched its Compliance Programme, […]