“How do I deal with Vat while waiting for a Vat number”?

Simangele Mzizi, Fsp Business, 09 Oct. 2014

Tags: vat registration, registering for vat, vat, vat number, dealing with vat while waiting for a vat number

Our Vat experts get a lot of questions regarding Vat registration.

This is great, because it means vendors are taking the legal duty to register for Vat seriously and are taking steps to comply with the Vat Act.

One question our experts received this week comes from a vendor who wants to know how she must deal with Vat while waiting for a Vat number.

Read on to find out the answer so you’ll know exactly what to do should you find yourself in a similar situation.

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Do this to deal with Vat while waiting for a Vat number

According to the experts behind the Practical Vat Loose Leaf Service, even though SARS has introduced a new registration process, getting a Vat number can still take a while – during which time you’ll probably already start trading. This means you’ll incur Vat on your purchases and expenses.
So, to deal with Vat correctly during this time, you must do the following:
  • Keep all the tax invoices for business expenses for the period you’re trading but not Vat registered for up to five years.
  • Once you get your Vat number from SARS, claim all that Vat back in your first return. Fill in the total amount in block 15 on your Vat return.
  • Don’t charge your clients Vat. Even though you’re trading, you can’t charge Vat to your clients. Once you receive your Vat number, you can go back and levy the Vat on your clients. This is, of course, unless you have an agreement that specifically disallows this.
It’s that simple to deal with Vat while waiting for a Vat number.
PS: We strongly recommend you check out the Practical Vat Loose Leaf Service. It gives you tips, tools and advice to comply with the Vat Act.

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Dee Mkhasi 2015-05-22 05:05:15

I would like to receive the newsletter on vat matters please. Thank you, Dee


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