Does a Personal Services Provider have to charge VAT?
It was during one of my many meetings that I realised that this was a question that did not have a simple answer.
A client of a Personal Services Provider has to deduct PAYE when paying the provider’s invoices, so does that mean that the PSP is an employee? If so, does that mean that, even though its turnover exceeds R1m, it is not carrying on an enterprise and therefore does not have to register for VAT?
It’s a tricky question, but, fortunately, the South African Institute for Tax Practitioners (SAIT) came to my resuce with an opinion on that exact question. Here it is
To cut a long story short, their conclusion was: Yes, all else being equal, a PSP must register for, and charge, VAT.
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HHi urgently need advice about a carpentary business I recently usedxa carpentary business to refurbish our house window and door frames. The owner turned out to be unbelievably unethical. I would like to know if his tax invoices are valid/legitimate or fraudulent.
The Woodsquad tax invoice uses the same vat number as Call Media.
Status : AR deregistration 2016.
The owner of Woodsquad is an inactive director under the registered business,Call Media”
I know ‘trading as’ is common, but there is absolutely nothing that remotely links the registered company( media )to the ‘trading as’ company( carpentary wood renovations business
No reference is made to a ‘ trading as ‘ business under Call Media company information.
Hi Tamsin,
I presume that you dealt with Woodsquad (Pty) Ltd trading as Call Media
If that’s the case, there’s nothing wrong with it.
What is wrong, and you should report it to SARS, is the use of another company’s VAT number.