Value-Added Tax (VAT) - changes

A vendor is required to register for VAt when his turnover in a 12 month period is likely to exceed R1 mio (previously R300.000). Where the turnover is less than R1 mio, but exceeds R20.000 (R60.000 in the case of commercial establishments) in a 12 month period, a vendor can register voluntarily.

The threshold for compulsory registration increases from R300.000 to R1 mio!

NOTE:
This change comes into effect once the government has finally agreed on. Currently it is a proposal, but it is very likely that it will be decided on by mid of this year.