Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
Search Products
Filter by Categories
B-BBEE
Blog
Company Secretarial
Featured
General Business
General Interest
Investing in Property
Marketing
Personal Growth
Personal Wealth
Tax
Trusts and Estate Planning
Uncategorized

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.

2 comments

  1. 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. 

    1. 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.

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Looking for even more informative content? Check out the books I have written which have proved to be very popular.

Need help with your Trust or Business?

Contact us today or set up a free meeting with our CEO, Derek Springett. We have been offering expert advice and business services since 1971. You can also view see our full list of services.

Do you want to leave your cart?

Your cart is awaiting your next purchase, so please proceed to the Home page and continue shopping. If you are leaving your cart because of problems, why not give us a call on our 24 hr numbers 063 866 8928 or 011 805 0030 (subject to load shedding)? If all else fails, call Derek, our CEO on 082 552 9696. We’ll do what we can to help