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Leonie says: 6 July 2020 at 9:41 What is the difference between a VAT registration number and a tax reference number. When do I use which one? Are they not the same thing? This entry was posted in Tax Q&A and tagged Deductions, Audit / Verification, Tax Threshold, SARS & eFiling, PAYE & UIF. Bookmark the permalink. |
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TaxTim says: 6 July 2020 at 18:20 An Income Tax Reference number is issued by SARS when a person/company registers for Income Tax purposes. If you earn a taxable income which is above the tax threshold you must register as a taxpayer with SARS and submit your annual tax returns. A business receives a VAT number when registering for the VAT tax, therefore it is compulsory for a business to register for VAT if the total gross income made in any consecutive twelve month period exceeds R1 million. VAT is imposed on most supplies of goods and services that are bought and sold. A business pays the government the VAT that it collects from the customers while it may also receive a refund from the government on VAT that it has paid to its suppliers. |
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