Registering for VAT can be a long and adjuous process. Below is a short list of the requirements by SARS to ensure a successful registration applicatication.
1. Company registration document
2. Certified ID copies of members/directors
3. Proof of Address of the company
4. Proof of Address of the representative taxpayer (member/director selected as public officer)
5. Bank letter and 3 months bank statements with an original bank stamp
6. Total Sales amount for the last 12 months
7. Latest Sales invoices of at least R 4 200.00
*Proof of Address
These should be in the form of a utility bill like electricity or water. SARS usually does not accept other forms like clothing bills or bank statement addresses.
SARS has a CRA01 form used in the cases where the utility bill is not in the name of the company or individual. This form is filled in by the landlord mentioning that the applicant rents out the place in question. This also applies where a company is based at the house owned of rented by the member/director.
Click here to access the SARS CRA01 - Confirmation of Residential or Business Address form.
Just note that SARS is now more strict on who to approve VAT application for. Companies are mandatorily required to register for VAT when their annual sales reach R 1 million or when they see that they will most likely reach that goal. Other entities making taxables revenue less than R 1 miilion but exceeding R 50 000 in the last 12 months can volunteer to register for VAT and it is up to SARS to approve it or not.
You can also be approved for VAT if you can proove to have solid future revenue meeting the requirements in the next 12 months. This might include a sales order or contact among other things.
We advise companies to consult with experts before registering for VAT to weigh in the pros and cons of registering for VAT as this brings in more work and compliance requirements that might actually turn out to be burden for small businesses and start ups.
Get in touch with us for assistance and consultation on the above matters....