FINANCIAL CONSULTANTS INC
TAX
When should VAT be paid?
For businesses that file their VAT returns and make payments electronically, the VAT must be paid by no later than the last business day of the month after the end of the tax period.
Getting ready for VAT
What steps must you take?
Once your business is registered for VAT, it is obliged to perform certain duties and take on certain responsibilities, for example, it is required to- include VAT in all prices advertised or quoted; charge and collect VAT; submit returns and payments on time; issue tax invoices for supplies made; maintain adequate records for supplies made and received.
Accurate and timeous tax returns for your peace of mind.
TAX PERIODS FOR VAT VENDORS
What tax periods are available for VAT?
The tax periods that are available are classified into six categories namely:
CATEGORY
A
Under this category a vendor is required to submit one return for every two calendar months, ending on the last day of January, March, May, July, September and November.
CATEGORY
B
Under this category a vendor is required to submit one return for every two calendar months, ending on the last day of
February, April, June, August, October and December
CATEGORY
C
A vendor is required to submit one return for each calendar month. A vendor will fall within this category if the turnover exceeds or is likely to exceed R30 million in any consecutive period of 12 months, the vendor has applied in writing to be placed in this category or
repeatedly failed to perform any obligations as a vendor.
CATEGORY
D
Under this category, a vendor submits one return for every six calendar months, ending on the last day of
February and August.
This category applies mainly to a vendor who carries on farming activities with a total turnover of less than R1.5 million
for a period of 12 months.
CATEGORY
E
This is commonly referred to as the annual tax period because a vendor is required to submit one return for
12 calendar months. The vendor must, amongst other things, be a company or trust fund in order to fall within this category. The additional criteria to fall within the ambit of this category are set out in Chapter 3 of the VAT 404 guide.
CATEGORY
F
This is a four-monthly tax period that was introduced, effective from
1 August 2005, to assist small business.
The four month period for each year are as follows: March to June to be submitted in July July to October to be submitted in
November November to February to be submitted in March