What is VAT?

VAT is an indirect form of taxation ultimately bourne by the end user.

It is mandatory for any business to register for VAT if the income earned in any consecutive twelve month period exceeded or is likely to exceed R1 million. Any business may choose to register voluntarily if the income earned, in the past twelve month period, exceeded R50 000.

Documentary requirements:

1. Company registration documents
2. ID Copies for all the directors / members
3. Original bank letter - Letter to be date stamped and signed by a bank official
4. A sample of sales invoices (minimum turnover requirements = R50,000.00)
5. 3 months bank statements - date stamped and signed by a bank official

For FICA purposes

1. Proof of business address - a lease agreement or latest utility bill
2. Proof of residence for the representative director – utility bill or lease agreement if renting
3. Proof of registration for income tax – company

Cost = R5000.00

Turnaround: 2 working days