Three instances where you qualify for voluntary Vat registration

43984, 04 Nov. 2014

Tags: vat registration, sars, voluntary vat registration

You know that it’s compulsory to register for Vat if:
  • You have a business and your total taxable turnover exceeded R1 million in the previous 12 months;
  • You have a business and your total taxable turnover will, in terms of a written contractual commitment, exceed R1 million in the next 12 months; and
  • You’re a foreign supplier of electronic services and your taxable supplies to South African customers exceeds R50 000 in any 12-month period.
But what about voluntary Vat registration? Is there even such a thing?
Yes, compulsory Vat registration does exist.
And in terms of Vat law, there are three instances where you qualify it…
Read on to find out what these are so you can determine if you make the grade.
You’ll qualify for voluntary Vat registration in these three instances
Even if your taxable turnover doesn’t exceed the R1 million threshold, you can voluntarily register for Vat in any of the following instances:
#1: You acquire a business as a going concern from a determined date and that business had a taxable turnover of more than R50 000 in a previous 12-month period.
#2: Your enterprise is a welfare organisation, share block company or municipality and you made less than R50 000 in a previous 12-month period.
#3: You’ll only make your taxable supplies after some time, but you reasonably expect these supplies to exceed R50 000 in value over the 12-month period.
If you don’t fall in one of these three voluntary Vat registration categories and your taxable turnover doesn’t exceed R50 000 a year, SARS will refuse your registration.
Now that you know about these three instances, consider voluntary registration if you qualify.

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