How does VAT work in South Africa?

In this video I talk about Value added tax and how VAT works in South Africa. I also had a look at when you need to register for VAT in South Africa and how the process works, here is the list of questions I answer in the video
This video is part of the "starting a business" series
0:00 - 0:15 intro
0:15 - 0:25 What is VAT?
0:25 - 3:36 How does VAT work?
3:36 - 4:10 What is Input tax and what is Output tax?
4:10 - 5:25 When do you need to register for VAT?
5:25 - 10:48 What is the VAT registration requirements?
10:48 - 12:13 What is Zero rated VAT?
12:13 - 13:17 What are exempt supplies?
13:17 - 15:40 What are the different VAT periods? When do you have to pay VAT?
15:40 - 16:15 What are the requirements for VAT invoices?
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[@vona5251]

Thanks for the free advisory service. Most Accountants charge per hour forbthis information

[@SAAccountingNetwork]

Happy to help

[@Tsoga_Afrika]

Very informative, thank you so much for this video.

[@SAAccountingNetwork]

Glad it was helpful!

[@sadigitalmarketing9328]

Another great video! Thanks for the lovely explanations!

[@SAAccountingNetwork]

Glad you enjoyed it!

[@somkhandainyosi]

@@SAAccountingNetwork What's your contact details

[@vincentmothiba2341]

Thank you for the great work.

[@SAAccountingNetwork]

Thank you!

[@divinemaredi8298]

Thank you for this informative video!

[@SAAccountingNetwork]

Glad it was helpful!

[@mandyarchery3780]

Happy to have found this Channel. Thank you

[@SAAccountingNetwork]

Welcome!

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[@zaakirh1]

Thank You, very informative and detailed.

[@SAAccountingNetwork]

Glad you enjoyed it!

[@safetytraininglicense]

Succinct and useful. Thank you!

[@SAAccountingNetwork]

Glad it was helpful!

[@mamaribequeen5569]

I like the way you explain your topics, you really help me alot. Thank you very much.

[@SAAccountingNetwork]

Thank you very much for your kind words! Its people like you who inspire me to keep on doing these videos!

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[@1000ralphw]

Excellent

[@SAAccountingNetwork]

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[@artwellmdineka3424]

much constructive, big up🤝

[@SAAccountingNetwork]

Appreciated

[@pablomogosi8712]

Thank you.

[@SAAccountingNetwork]

You're welcome!

[@accentuatehairandmakeup]

Hi, thank you for this! I wanted to find out: If I am 90% service based what are my options? I can't see how registering for VAT would be in my best interest as a small business owner? I won't be able to claim back much. Our pricing is also already at the higher end of the market and upping it to cover the VAT would possibly price us out of the market. Do you have any advice for me? I want to operate within the law of course and still pay what I need to to SARS but would like to also understand things better. I currently have a team of makeup artists who contract out to me (not employed) and then I also have an Academy

[@SAAccountingNetwork]

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[@llewellynerodrigues1119]

Thank you for your video, very informative. Do you have a video regarding Insurer tax invoices with broker fee etc and what is VAT / Zero Rated.

[@SAAccountingNetwork]

Unfortunately not, that is quite a specialized field

[@NazareenEbrahim]

Heinrich thank you for this great video. Can our business claim VAT on a car repayments on a light passenger vehicle brought through the business on finance? Thanks

[@SAAccountingNetwork]

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[@eduexplo4110]

I supply goods to government departments and I now want to register for VAT so I can open accounts with distributors/manufacturers and buy directly instead of the retail stores. Is it wise to register for VAT the same entity I use to supply or it's best I have a separate entity for supplying and different one for buying from distributors/manufacturers?

[@SAAccountingNetwork]

I personally would keep operations as simple as possible, so my recommendation would be to do it through one company

[@maidimodiba640]

Hi im in the vegetation management services and have a contract that has been awarded in 2020. now my business runs mainly on petrol and diesel during cutting of grass, the rice of petroleum products has increased dramatically since then and we have been running at a loss since. what happens then if we are cannot pay VAT as the money is used to cover losses and other over head expenses?

[@SAAccountingNetwork]

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[@user-qo4qr9sr8k]

Great video, do you recommend any booking software

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[@mamaribequeen5569]

Sir Let say I registered for VAT and the first two months of doing return I dnt make sales but I've got monthly expenses is SARS going to change me? If so why would they charge me and how much will it be and how is it calculated? Thank you. 🤝

[@SAAccountingNetwork]

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[@Synergy_World]

Can i take the 15% to use it to do something which will give me more money?then pay back the 15%

[@SAAccountingNetwork]

In theory yes, but when they come knocking on your door you must have it ready!

[@mrgrehan9981]

do the first person in the chain not pay any vat? surley they dont get their stuff for free with out vat

[@SAAccountingNetwork]

Yes, so if you are a farmer, miner or fisherman you cant claim input vat as you are not buying anything, but the expenses you incur to produce the products you can claim on, like machinery and operating expenses

[@cheripitout3273]

Can you tell me about import tax

[@SAAccountingNetwork]

That is quite a specialized field, best to chat to your accountant

[@Ant_ertainment]

Hi. Is this still relevant in 2023?

[@SAAccountingNetwork]

Yes it is👍

[@Ant_ertainment]

@@SAAccountingNetwork Thank you. This video helped me out a lot😌... You've got me as a sub🙏

[@enkay2010]

Very informative 10/10.

[@SAAccountingNetwork]

Glad you think so!

[@SAAccountingNetwork]

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