TaxTim, I have a company registered for turnover tax. I Have the following questions please:
1 - What happens when you exceed the allowed R1m turnover in a tax year? 2 - Do you have to recalculate tax for the past year using the SBC Tax Tables? 3 - What about the VAT? I have not registered for or charged VAT, what will happen now that I've exceeded the R1m threshold. I thank you in advance for your support.
When you have exceeded the R1m turnover you need to deregister for Turnover Tax and change to a normal Taxpayer as a company. You will have to register for VAT as you have exceeded the VAT threshold as well. In order to qualify as an SBC please go through our questions on Is my Business a Small Business Corporation?
Hannessays: 15 February 2016 at 7:12
Do I once deregisterred, have to pay Tax and Vat for the full year that passed or only for the portion exceeding the 1million threshold?
TaxTimsays: 16 February 2016 at 16:10
You will have to submit two separate tax returns, one to the date and then revert to a normal taxpayer after no longer qualifying as a Micro Enterprise.
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