How does VAT work?
The South African Revenue Services (SARS) have put together a VAT guide for vendors which explains all VAT requirements in detail.

The impact on you

It is compulsory to register for VAT if your actual turnover, or expected turnover for any consecutive 12 month period, will exceed R1 million.

You should charge 14% on all your NORMAL RATED sales and distinguish in your accounts and on your invoices between ZERO RATED and EXEMPT SUPPLIES.

Should you make any purchase from registered VAT vendors, you will be allowed to claim input VAT on those purchases

The claiming of input VAT is also subject to the distinction between NORMAL PURCHASES, ZERO RATED PURCHASES and EXEMPT PURCHASES

The correct calculation of VAT can be quite tricky, and we can assist you with the detail and correct calculation thereof.

SOURCES :
Cronje & Cronje
Business Partners