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Hi Guys
I've registered a brand new cc...have a strong potential client-base...however, cannot trade without a VAT number. I went through the entire process with SARS(all documentation + interview)and was declined because of 3rd party validation, I had no cash-flow over R50k, invoices etc, for last 3 months...How do you start a new business and obtain a VAT number??

Ben, the best for you is to do the following.
First, with SARS you never stop trying.
Fill in the VAT101 application form again. Ask your financial officer to fill in the piece where it ask you for your financial details, it is either the real figures for the time being or the projected numbers for what you will do in the future.
With that attach certified copies of the ID documents of the partners of the CC, copy of certificate of incoporation and either your last bank statement or an original cancelled checque or origanal letter of your banker.
Hopefully with all of that you will be able to get your VAT number.
Greetings and just shout if you still have problems.
Francois Carstens

So if a new businesses starting up is projecting sales figures of R50 000 + per month, can they get a VAT number, or do you have to show real turnover of this amount for X amount of time? Is it possible for a business turning over less than 50k to get a VAT number?

You may voluntary register for VAT however it is restricted to any of the following catogories of persons:

share block companies, local authorities and
welfare organisations;

any person carrying on an enterprise where the
total value of taxable supplies made by that person in the course of carrying on all enterprises in the period of 12 months has exceeded R20 000;

any person who intends on carry on an enterprise from a future specified date, and where such a going concern has generated at least R20 000 in taxable suplies in the previous 12 months period in the hand of the seller;

any person who carries on any activity which results in taxable supplies being made for a consideration only after a period of time, but when it is started to make the value should exceed R20 000 per annum

However, if you apply for volontury registration SARS may refuse to register you in following circumstances:

if you have no fixed business;

if you have not keep proper acounting records relating to the enterprise;

if you have not open a banking account;

if you where previously registerd as a vendor in respect of any enterprise under the VAT Act or Sales Tax Act, and failed to perform your duties under either of those Acts.

Few things to consider if you want to register for VAT

if your business buys lots of goods from suppliers, and you will entitle to claim back the VAT that you pay;

if you register for VAT remember that your prices must he increased by adding VAT to them, and you may be more expensive then you competitiors;

if you register you will have addional admin costs, because you are required to submit returns to SARS on a regular basis.

You must register for VAT when your turnover is more then R1 million per year.

Thanks for the comprehensive answer. Ben11 - I hope this helps you...

Yes guys. Thank you for the input and advice. I'll be at SARS tomorrow and will keep you updated on our progress.

Glad that you found our site usefull. Good luck at SARS tomorrow

Ben11 wrote:
Any luck with sorting this out yet?

Hie,
Did you manage to register for vat, if not, let me know, l may be able to help.

This is a tough one. SARS is clamping down on VAT registrations becasue of abuse. A solid business plan and budget should be enough to justify registration. SARS will only look at the budget (a tip here is to use similar businesses as a basis for your budget). Failing which try register for Turnover Tax, a newish product from SARS and is starting to carry weight with suppliers.