VAT
Value-added Tax (VAT) is an indirect tax levied on the consumption of goods and services delivered throughout the economy. This tax is added to multiple phases throughout the production of goods and services.
VAT can be charged/deducted by the entity on all supply of goods and services and throughout the production thereof, granted particular requirements are met concerning these incomes/expenses.
An individual, a company, partnership, Trust fund etc., must register for VAT if the value of taxable supplies (income received thereof) exceeds R1 million in twelve months. Voluntary registration of an entity for VAT can be done if the value mentioned above is not exceeded.
The following categories are available for VAT periods:
Two-month periods referring as categories A & B.
Category A ends on uneven months (the last day of January, March, May, July, September and November), and category B ends on even months (the last day of February, April, June, August, October and December).
Category C ends every calendar month, category D ends every six months, and category E ends every 12 months (year).