29/09/2026
💰 VAT FOR SMALL BUSINESSES!
Are you a small business owner and confused about VAT? Here’s what you need to know. 👇
📌 What is VAT?
VAT means Value-Added Tax. It is a tax charged on most goods and services supplied in South Africa.
📌 When must a business register for VAT?
From 1 April 2026, a business generally has to register for VAT when its taxable supplies exceed R2.3 million in any 12-month period.
📌 Can a smaller business register voluntarily?
Yes. A business may qualify for voluntary VAT registration if its taxable supplies meet the applicable R120,000 threshold, subject to SARS requirements.
📌 What happens when you are VAT registered?
A VAT-registered business generally:
✅ Charges VAT on taxable sales
✅ Issues proper tax invoices
✅ Keeps accurate VAT and financial records
✅ Claims eligible input VAT on qualifying business expenses
✅ Submits VAT returns to SARS
✅ Pays the difference between output
VAT and allowable input VAT to SARS
🧮 SIMPLE EXAMPLE
If you provide a service for R10,000:
Service: R10,000
VAT @ 15%: R1,500
Total charged: R11,500
If you paid VAT on qualifying business expenses, you may be able to claim the applicable input VAT, subject to SARS requirements.
⚠️ IMPORTANT FOR SMALL BUSINESSES
VAT collected from customers is not simply additional income for your business. It generally needs to be accounted for and paid over to SARS after taking allowable input VAT into consideration.
💡 SMALL BUSINESS TIP
Don't wait until your business is struggling with compliance.
Keep your invoices, receipts, bank statements and financial records properly organised from the beginning. Good record-keeping makes VAT and tax compliance much easier.
📞 NEED HELP WITH VAT?
SSG Bookkeeping And Business Solutions Pty Ltd can assist with:
📌 VAT registration
📌 VAT returns
📌 SARS eFiling
📌 Tax compliance
📌 Bookkeeping
📌 CIPC compliance
📌 Business registration and support
📞 079 984 5474
📧 [email protected]
🌐 gabaatlholeholdings.mystrikingly.com
SSG Bookkeeping And Business Solutions
“Where your business matters.” 💼
Serving businesses and individuals nationwide.
