Category: South Africa / Insurance / Resources

New four-monthly tax periods 

To assist small businesses, with effect from 1 August 2005 the SA Revenue Service has introduced four-monthly tax periods for the rendering of VAT returns. 

In terms of the new Category F, tax periods will end on the last day of February, June and October of each year. This will be available only to small businesses (including companies) with an annual taxable turnover of less than R1 million, or a turnover which is not expected to exceed this amount.  Vendors who conduct their business under different VAT registered branches will not qualify for the Category F tax period even if the combined taxable turnover of those branches is less than R1 million a year. 

SARS will notify qualifying vendors, who may opt for the Category F status.  In the meantime, don’t forget that from 1 March 2005 suppliers must include the VAT number of the recipient of any tax invoice issued when the consideration is R3 000 or more.

Source:  Santam e-focus February 2006

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