My B&B started trading in Aug 2015, it's year end is Sep so the first set of Annual Financial Statements will be dated Sep 2016 (14 months). Our management accounts dated April 2016 reflect our revenue is already around R650,000. We are not yet registered for VAT but we'll be doing so very soon. My concern is do we now have to register, submit and pay all the VAT from Aug 2015 to current, OR do we just register, submit and pay from now going forward? I read somewhere that according to the VAT Act a vendor is liable to submit and pay the VAT for 12 consecutive months, so when we submit our tax return at the end of our financial year SARS will pick up that we exceeded the R1 million threshold and as such demand that we pay the VAT from the very first month of trading? Please shed some light
It is mandatory for a business to register for VAT if the income earned in any consecutive twelve month period exceeded or is likely to exceed R1 million. As soon as you are registered, it is compulsory to add VAT to all of your customer invoices. You won't be liable for VAT from your first month of trading, but rather from registration going forward.
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