Vat Returns
VAT returns in Durban
All companies in South Africa are required to submit VAT returns on a regular basis, depending on what tax period category they fall into. Regardless of which of the five categories your company is in, your VAT returns depend on regular, accurate record-keeping by a qualified accountant and tax practitioner.
CBO is a VAT returns practitioner in Durban. Based on the monthly record keeping we will ensure that your VAT submissions are submitted and paid as required. All revenue services queries, reviews or audits can also be handled by our experienced staff.
SARS VAT return categories
Each South African VAT vendor falls into one of five tax period categories:
- Category A: VAT returns must be filed every two calendar months (January, March, May, July, September, November)
- Category B: VAT returns must be submitted every two months (February, April, June, August, October, December)
- Category C: VAT returns must be submitted every month
- Category D: One VAT return must be filed every six months
- Category E: One VAT return must be filed annually
Which category you fall into depends on a variety of criteria including what type of business you run, and the total value of your taxable supplies, among others.
If you need professional VAT returns services in Durban, as part of a complete accounting service in Durban, contact CBO Accounting and Tax.
VAT return FAQs
Taxes, including VAT, are a cause for many points of confusion and misunderstanding. We always strive to demystify VAT and make taxes easier and less intimidating for our clients. Here are answers to some of the most common questions about VAT.
What is VAT?
VAT stands for value-added tax. It is an indirect tax on the consumption of goods and services across all sectors of the economy. All businesses carrying on an enterprise in terms of section 1 of the VAT Act must register for VAT. The business then charges VAT on the goods and services it supplies. The business can then also deduct any VAT that it pays on its business costs (supplies, raw materials, etc.) VAT is charged at each stage of the production and distribution process and is proportional to the price of the respective goods and services. The current standard VAT rate is 15%.
When must VAT returns be submitted?
A VAT vendor must pay its VAT liabilities on or before the 25th day of the month following the final month of the vendor’s tax period.
Who must register for VAT?
An person (being either an individual or business) that carries on an enterprise in terms of section 1 of the VAT Act, may qualify to register for VAT. It becomes compulsory for a person to register for VAT if the value of taxable supplies exceeds R1 million in any twelve-month period.
A person may also register voluntarily if the value of goods supplied does not exceed R1 million in any twelve-month period. There are five categories of voluntary registrations:
- Category 1 applies to a specific type of person that has no threshold for the value of taxable supplies.
- Category 2 applies to a person that has made R50 000 or more in the past twelve months.
- Category 3 applies to a person whose supply of taxable goods has not exceeded R50 000 in the past twelve-month period but are provided for in a special Regulation.
- Category 4 applies to a person that has acquired a business as a going concern
- Category 5 applies to a person that carries out a specific nature of activity as listed in a Regulation.