CLOSE CORPoRATION REGISTRATION MADE EASY - ONLINE CLOSE CORPORATION REGISTRATION SERVICES

Should I register my CC for VAT?

By law you are only required to register for VAT if the turnover of your business is R300,000 or more, in any 12-month period. You can register your close corporation voluntarily if you make a minimum turnover of R20 000 per year. You can only register for VAT after the CC has been registered and you have opened a bank account for you close corporation.

A Tax Invoice must have the following information:

1. The words 'TAX INVOICE' must shown.

2. The date of tax invoice and invoice number.

3. The name and address of your client

4. The person supplying the tax invoice, the name of the CC, address and VAT registration number.

5. The VAT amount must be shown separately at 14% or 0% (VAT exempt)

Your payment must reach SARS on or before the due date, every 2 months. VAT Registration can be done by your own Accountanting officer or using our accounting officer.

What is the Small Retailers' VAT Package?

The Small Retailers' VAT Package, a simpler VAT option for small retailers, forms part of SARS’s drive to help small businesses. If you qualify for the package it means that you can satisfy the VAT Act without having to keep detailed records or buy expensive cash registers to keep track of sales.

The package also includes a free set of pre-printed books in which vendors keep track of stock and sales. In short, you get to spend more time and money growing your business. This is not only important for the success of your business, but for the growth of our economy too.

Why was the Small Retailers' VAT Package introduced?

1. To make it simpler for small retailers who are registered for VAT.
SARS recognises that small retailers find it difficult and time consuming to keep the detailed sales records required by the VAT Act. The Small Retailers VAT Package is designed to cut through these problems and make accounting for VAT simpler for small retailers.

2. To make it simpler for small retailers who are not registered for VAT to satisfy the law.
All retailers who have turnover of R300 000 or more per year must register for VAT. There are many small retailers who should register for VAT but do not. However, SARS recognises that this is often due to a lack of knowledge or because small retailers feel that the process is too complicated and time consuming. While this is not a valid excuse for not registering, SARS has resolved the problem by introducing the Small Retailers VAT Package. Unregistered retailers are thus encouraged to register for VAT and apply for the Small Retailers VAT Package.

3. To reduce VAT fraud.
SARS is aware that some retailers abuse VAT through dishonest reporting of sales information. There are also retailers who knowingly avoid registering for VAT when they are required to do so. These practices are regarded as serious criminal acts and SARS will increase its audit activity among retailers to identify such retailers.

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