25. SARS VAT Vendors Guide.pdf

Thereof by the supplier of the going concern has

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thereof) by the supplier of the going concern has exceeded R50 000 in the preceding 12-month period. See VAT-REG-02-G01 – Guide for Completion of VAT Registration Application Forms – External Guide for more details on the registration of an enterprise supplied as a going concern. 30 See section 17(2A). 31 Section 8(5B) read with section 11(2)( q ). 12
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VAT 404 – Guide for Vendors Chapter 2 2.3.7 Other exceptional circumstances As a general rule, you may apply to register voluntarily if you – carry on an enterprise or intend to carry on an enterprise referred to in 2.3.6 and the value of taxable supplies made has exceeded the minimum threshold of R50 000 in the past 12-month period; or carry on the activities of persons discussed in 2.3.2 to 2.3.5 , which are specifically included under the definition of “enterprise” in section 1(1). Notwithstanding the above rule, there are certain exceptional circumstances when a person may apply to register voluntarily, subject to certain conditions set out in regulations made by the Minister being met. Section 23(3)(b)( ii ) – Under certain circumstances, a person carrying on an enterprise may apply to register voluntarily if the person – has made taxable supplies which do not exceed R50 000, or has not made any taxable supplies as yet, and that person can satisfy the Commissioner that it can reasonably be expected to make taxable supplies in excess of R50 000 in the following 12-month period commencing from the date of registration. The Commissioner will be satisfied that a person will make taxable supplies in excess of the said R50 000 as expected, where one or more of the following circumstances set out in GN R447 exist: In the case of a person who has made taxable supplies for more than two months, such person has proof that the average value of taxable supplies in the preceding two months prior to date of application exceeded R4 200 per month; or The value of taxable supplies made exceeded R4 200 in the month preceding the date of application, where taxable supplies were only made for one month; or The person has a contractual obligation in writing to make taxable supplies in excess of R50 000 in the 12-month period following the date of registration; The person has acquired finance from certain specified credit providers, wherein finance has been provided to fund the expenditure incurred or to be incurred in the furtherance of that person’s enterprise and the total repayments in the 12 months following the date of application will exceed R50 000; and The person can provide proof of expenditure incurred or to be incurred or capital goods acquired in connection with the enterprise and proof of payment or an extended payment agreement as evidence that payment has already exceeded R50 000 or will exceed R50 000 in the 12-month period following or commencing before and ending after the date of application.
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