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Andrew said: 30 November 2021 at 9:01 I am a provisional taxpayer in South Africa working solely for a foreign company (my services are all export related) with my turnover exceeding R1 million a year. I know that exports are zero-rated for VAT. Do I need to register as a VAT vendor, even though my income would not be subject to VAT? |
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TaxTim Nicci said: 30 November 2021 at 14:50 You are required to register your business for Value Added Tax (VAT) if your business makes taxable supplies which are more than R1 million in a 12 month period. Zero-rated supplies are still considered to be taxable supplies and therefore you would need to register for VAT. As a registered VAT vendor, you can claim input VAT on any goods or services that went into making those zero-rated items. Therefore, even though VAT is levied at 0% on your exports, you should be able to claim input VAT on your business related expenses. It is important to note, that even if you trade as a sole proprietor/freelancer and not a company, you would still need to register for VAT if the taxable supplies of your business exceed R1 million in a 12 month period. |
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