VAT

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VAT - GRADE 12

VAT - GRADE 11

VAT GRADE 10

Calculate the amount payable to or receivable from the South African Revenue Services (SARS)

Completion of the VAT control ledger account from given information

Integration of ethical issues relating to VAT

Integration of internal audit and control processes

Perform VAT calculations:

  • use current rate
  • add VAT to cost price plus markup amount
  • calculate VAT from VAT-inclusive amount
  • invoice or receipt base.

Understand the effect of bad debts, discounts and goods returned on VAT

Integrate ethics relating to VAT - VAT fraud, etc.

Integrate internal audit and internal control

processes over collection of VAT from customers and payment of VAT to SARS.

Explanation of the basic concepts of VAT:

  • need for VAT
  • purpose of VAT
  • principles of VAT
  • zero-rated items
  • VAT-exempted items
  • VAT-able items
  • current VAT rate













VAT - GRADE 12



http://www.sars.gov.za/TaxTypes/VAT/Pages/default.aspx

VAT

What is VAT?

Value-Added Tax is commonly known as VAT. VAT is an indirect tax on the consumption of goods and services in the economy. Revenue is raised for government by requiring certain businesses to register and to charge VAT on the taxable supplies of goods and services. These businesses become vendors that act as the agent for government in collecting the VAT. 

VAT is charged at each stage of the production and distribution process and it is proportional to the price charged for the goods and services.

VAT is presently levied at the standard rate of 14% on the supply of most goods and services and on the importation of goods. The VAT on the importation of goods is collected by customs. There is a limited range of goods and services which are subject to VAT at the zero rate or are exempt from VAT.

Who should register for VAT?

Any person that carries on a business may register for VAT. You can register once for all different tax types using the client information system. The term person is not only limited to companies but also includes, amongst others, individuals, partnerships, trust funds, foreign donor funded projects and municipalities. In order to register, an application form must be completed and a specific process must be followed, both of which you can find on our page how to register for VAT.

 

It is mandatory for a person to register for VAT if the taxable supplies made or to be made is, in excess of R1 million in any consecutive twelve month period.

 

A person may also choose to register voluntarily if the taxable supplies made, in the past period of twelve months, exceeded R50 000. As from the 1st of March 2012, qualifying micro businesses that are registered for Turnover Tax may also choose to register for VAT provided that all the conditions for voluntarily registration for VAT are met.

 

A person who is obliged to register for VAT is referred to as a vendor.

When should I submit returns and make payments?

A vendor is required to submit VAT returns and make payments of the VAT liabilities (or claim a VAT refund) in accordance with the tax period allocated to the vendor. The VAT returns and payments are normally submitted / made on or before the 25th day after the end of the tax period. Late payments of VAT will attract a penalty and interest.

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