Value-Added Tax (VAT) basics - South Africa 2018
Having children can be amazing, but also expensive... For tips on how to save a bit of money on children related expenses, please watch: "Costs of children and budget tips - South Africa 2019"
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Any and all entrepreneurs should at least know the basics of VAT. This video is an introduction to VAT.
Any person (natural person or juristic person) that make taxable supplies of more then R50 000 in a consecutive 12 month period can voluntarily register as a VAT Vendor.
Any person who makes taxable supplies exceeding R 1 million in a consecutive 12 month period, MUST register for VAT.
List of Zero rated (as per section 11 of the VAT Act) (list is not necessarily all inclusive) (conditions apply):
1. brown bread
2. dried mealies and mealie rice
3. brown bread flour (excluding wheaten bran)
4. samp
5. hens eggs56 (that is, not from ostriches, ducks etc)
6. vegetables57 and fresh fruit
7. dried beans
8. lentils
9.• maize meal
10. rice
11. pilchards in tins or cans
12. vegetable cooking oil (excluding olive oil)58
13. milk, cultured milk, milk powder and dairy powder blend
14. edible legumes and pulses of leguminous plants (that is, peas, beans, peanuts etc)
15. Fuel levy goods
16. Going concern (if a going concern is sold)
17. Services relating to intellectual property rights
18. Payments made by public authorities and municipalities to welfare organisations
19. Foreign donor funded project
20. Vocational training of employees
21. Goods temporarily imported for repairs
22. International transport
23. Any service supplied directly in connection with land situated outside the RSA
24. Services physically performed outside the Republic
25. Certain services supplied to non-residents
26. Municipal property rates
27. Farming goods
Recently added items (as per Mini budget 2018):
28. White bread flour
29. Cake flour
30. Sanitary pads
List of exempt supplies (as per section 12 of the VAT Act) (again, not all inclusive) (conditions apply):
1. Financial Services
2. donated goods or services sold by non-profit bodies
3. residential accommodation in a dwelling
4. passenger transport in South Africa by taxi, bus or train
5. educational services provided by recognised educational institutions
6. childcare services
7. services provided to members of body corporates, etc
8. Fixed property situated outside the Republic
I am Jacques P. Taljaard (BAP(SA)) (GTP(SA)), an accountant and tax practitioner in South Africa.
There's very little information available to the general public of South Africa that assists new entrepreneurs in setting up a business. With this channel I aim to change that.
#WhyZAisCool #AskAnAccountant #SouthAfrica #2018
Get in contact: www.pretera.co.za
Disclaimer Nothing in this channel can be considered "advice" in any form, and neither Jacques P. Taljaard nor Pretera Accounting Services can be held liable for any claim resulting from the information in this video. Since circumstances often differ vastly, should you need advice we recommend getting in touch with a professional service provider.
Пікірлер: 22
Thanks for the video bro. I appreciate educational videos
Hi Jacques, thanks for this informative video. I'm writing an online test later today🌚
Good evening sorry I know this might be out of your topic but just want to know if you may assist with a site that I can go to and check influences Vat has on SMME’s
Hi, can you please explain vat implications on imported good (second hand), fringe benefits, donations to a connected person or connected persons in general and commercial accomodation (the more than 28 days and R120000 rule, and at what percentage it is claimed at), indemnity payments. Thanks
@JJTAcc
4 жыл бұрын
Hey Tshepho Sorry for not responding sooner. I've been working on making videos on some of these queries you had. However these queries are a very technical to explain and most of them require a video on their own. Keep an eye out, they're in the making.
Hey. Can you claim for input vat for tracing fees paid to a tracing company by a law firm? (If you outsourcing for this service)
@JJTAcc
5 жыл бұрын
If both of you are registered, and VAT was charged, yes.
Jacques, time code 7:12 hahaha, Passenger transport: taxi's (drivers/associations) don't pay vat or the passengers don't pay vat?
@JJTAcc
5 жыл бұрын
Hi Brett. Thanks for the question. I realise when I said "the taxi industry don't pay VAT", it can be interpreted incorrectly. A taxi driver is not allowed to charge VAT for the transportation of his passengers. If your company for example rents a taxi for a day to take you on a tour, this will be non-VAT-able. However, the tour guide's fees will be a VAT-able supply. Also, taxi-associations' income is not derived from the provision of those services, but rather the management of the providers of those services. And management carries VAT at the standard rate.
Hi Jacques with regards to registering for VAT when you see that you are about to reach the 1M turnover or the voluntary registration assuming that you'll reach 50k in turnover, once you register say in the 9th month, are you still expected to submit the VAT returns of the 9 months you were not registered as well as the months going forward? I understand that rental income is exempt from VAT, can you still claim input Tax for say your security, rates and taxes, water, electricity, internet, cleaning services, etc. costs? Should you wish to renovate the place, the VAT charged by the contractor and architect, can they too be claimed back?
@JJTAcc
4 жыл бұрын
Hey Lehlonolo. Great question. In order to register for VAT on a voluntary basis, you need to prove that your taxable supplies exceed the R50 000 mark. Once you register, you will get a date of first liability on your registration certificate. That is the date from when you need to start filling and charging VAT. When it comes to rentals, the rental of commercial properties are considered a taxable supply. Rental of residential accomodation also, but there is a VAT exemption on a portion thereof. Once registered for VAT, you can claim vat on most services/products sourced from VAT vendors, with a couple of specific exceptions.
@LMokhele
4 жыл бұрын
Thnanks, much appreciated
Second! ✌️
Just to clarify, If I buy food ingredients from a food supplier who's price is ' EXCL VAT' and I use these ingredients to re-sell as my own food item (packaged salad) to a general consumer, I pay the tax to the supplier and then include tax on my food item to the general customer and then claim back the tax that I paid to the supplier?
@JJTAcc
4 жыл бұрын
Hi Alec That is a good question. The answer is yes and no. Yes, if you are a VAT vendor, you will have to charge VAT on the ready-to-eat packaged salad (because you packaged it and made it ready-to-eat: this is a VATable supply) and pay the VAT Output to SARS. No. If the supplier you bought the ingredients from is not VAT registered, then you can't claim back VAT seeing as there was no VAT Input you paid. Also, even if the supplier is VAT registered, most fresh produce is exempt from VAT so chances are there is no VAT Input anyway. However, if you are a major clothing and food retailer and purchase "packed ready-to-eat" salads from a VAT registered supplier and you sell that to your customers again, then you will have both VAT output and VAT Input in your return for that period. I hope this helps. Thanks for watching!
@AlecTraubBigAL
4 жыл бұрын
@@JJTAcc Thank you very much.
@JJTAcc
4 жыл бұрын
@@AlecTraubBigAL You're welcome
Woah, did you just say that VAT is a direct tax?
@JJTAcc
3 жыл бұрын
If I did, it most likely may have been a verbal error. VAT is most certainly an INDIRECT Tax, where the person paying the tax to SARS is not the same as the person eventually bearing the burden of tax. If I did say it's a direct tax, thank you for pointing that out. Sorry for the confusion.
the tax system in this country is way too complicated.
@lwazimateza499
3 жыл бұрын
Tell me about it
@JJTAcc
3 жыл бұрын
That's why we're here. 😉😄