Navigating Taxes Part 2: Registering for VAT
Let The Glass Castle make this easy: to register for VAT, you need to be running an enterprise. But what exactly is a “person” in VAT terms? It’s not just an individual—it can be a company, partnership, trust fund, or even a municipality! 🚶♂️🏢
Now, what’s an enterprise? It’s pretty much any activity that involves regularly supplying goods or services in South Africa for a fee—whether you’re making a profit or not! 💸 Even if you’re just starting or shutting down your business, it still counts as an enterprise for VAT purposes.
Here are some people/entities who are always included in the definition of “enterprise”:
• Public authorities notified by SARS 🏛️
• Welfare organizations ❤️
• Share block companies (under certain conditions) 🏢
• Agencies running foreign donor-funded projects 🌍
• Intermediaries and non-resident suppliers of electronic services 📲
But not everyone needs to register! Here’s when you don’t count as running an “enterprise”:
• If you’re only making exempt supplies like financial services, residential accommodation, or public transport 🚎🏡
• If you’re an employee earning a salary from your boss (independent contractors are a different story) 💼
• If it’s just a hobby or something private, like selling personal items or household/homemade goods 🛋️
And here’s the big one: if your taxable supplies exceed R1 million in any 12-month period, you have to register for VAT. But even if you’re below that threshold, you can still register voluntarily under certain conditions! 📝 For more info straight from the source, check out: https://www.sars.gov.za/types-of-tax/value-added-tax/register-for-vat/
Want more tax-savvy tips to keep you financially-fit this VAT season? Head over to our website for all the details! 📲 https://theglasscastle.co.za/news/
