VAT registration Archives

There are a number of reasons for buying a shelf company that is already VAT registered. 1) SARS makes it extremely difficult to register a company for VAT. Only professionals like ourselves find it relatively straightforward, but even so, a lot of paperwork has to be provided by the client. 2) If you are buying a commercial property, you simply must be registered for VAT in order to buy it as a going concern and have the transaction zero rated. Otherwise, you will have to pay the VAT and then claim it back and wait, and wait ……. for your…

There’s no option if your VATable turnover exceeds R1m per annum. If it is less, then you can voluntarily register if it is expected to exceed R50 000 per annum. Let’s take a look at the pros and cons of voluntary registration. But first we need to establish whether , given that your turnover exceeds R1m, you need to register. If the R1m is made up of items not included below as exempt, then they are VATable. Exempt items/services include – Public road and rail transport Rental of residential property Approved educational services Salaries Certain financial services, such as…

It now only takes about a week or so to form a new company, so why buy one off the shelf? The main reason for buying a shelf company is its age. We have them aged as old as 2010 and never having traded. You may want an old registration number to give the impression that you’ve been in the business a long time, or you may want to back-date some kind of transaction, such as the company’s ownership by a trust and that clearly can’t happen before the company and trust were both registered. That’s…

Pity you, the poor business owner who decides to voluntarily register his company for VAT. Here are the latest obstacles that you’ll have to overcome – You’ve heard somewhere that you can now register on-line. This was anounced with great fanfare about a year or so ago. Right, so you go on-line and yes, there’s an application form called a RAV01. You dutifully fill it in, but wait, the date first liable is critical as all transactions from that date are deemed to include VAT. So, make sure you get that right. So what next? You now have to take…

VAT registration

Can I buy a VAT registered shelf company?

Should I register for VAT?

Should I buy a shelf company or register a new company?

The impossibility of registering for VAT