When starting a new business in Johannesburg, you will require the services of a VAT consultant. Your business should then start performing well and your turnover should also increase. VAT generally applies to all transactions related to services and goods, and is destination based within South Africa. That means only the consumption of services and goods are allowed to be taxed.
VAT is paid on the supply of services or goods, and when one imports items into South Africa, the same also applies. The standard rate of VAT on the majority of supplies and importation is 14%, however, there are certain services and goods that are exempt from VAT, or are subject to tax at a zero rate. If you import goods for exemption or private purposes, then you need to pay VAT.
VAT is not included in salaries and wages, private recreation or hobbies, or the sales of domestic or personal goods. However, certain responsibilities have to be performed by vendors if they are already registered or liable to register for VAT. Compulsory registration is required when vendors supply taxable good in the excess of R1 million annually and if a minimum of R50 000 has been exceeded over a period of 12 months, only then can they register voluntarily.
When there are taxable transactions, a vendor must issue invoices, advertised items and quotes must include VAT in the prices, and returns and payments must be made on time to SARS. Vendors that are liable for VAT, have to complete a VAT 101 form, which must be submitted to the nearest SARS office, of which has to be submitted not later than 21 days from the date of liability.
When registering, it is vital that the correct documents are attached to your application; otherwise you may have to wait some time to obtain your registration number. Once registration is passed, you will receive a VAT 103 registration certificate.
A professional consultant will ensure that your business is compliant and will also help your business expand, if you are dealing across international borders. One needs to also investigate the different VAT systems in other countries, as this will protect your company against VAT costs, penalties and fines if you are non-compliant with another countries VAT regulations.
These variations can be dealt with effectively across multiple states by a competent consultant. Without the help of a VAT consultant, one can damage the company's budget, as well as increase the risk of fines and noncompliance, as VAT impacts every financial transaction made. You can prevent losses when you have an efficient VAT structure in place that ensures the accuracy of payments.
A VAT consultant in Johannesburg will provide sound solutions, which will save your company money and time. They can also identify the areas where your company could be losing money. A consultant will implement procedures to help you manage your needs, and will help reduce any negative impact on your company finances, along with ensuring VAT compliance.