Startups WRT VAT/TAX

[The legal way]

Hi fellow forumites,

I hope someone would be able to provide some insight into the above mentioned matter.
3-Months ago I registered a company providing mostly consulting and some minimal product sales to businesses.

The last 2-months it really started to take off as I have brought in some sales staff which drastically increased the growth.

Coming from a licensing/marketing background I find my late evenings taken up on research wrt. finance as I am currently doing that myself. At the moment this business managed after hours by myself as I still have a full time job.

It would be greatly appreciated if someone can advise specifically on VAT relating to gross revenue being currently not registered for VAT. I have some friends with limited knowledge on this matter (Article Clerks), but it seems like it would be more beneficial to NOT register for VAT until I reach R1-Mill gross?

Also at the time of not being registered for VAT, what do I do with the current VAT? Will it be paid once registered for VAT and then backdated? Do I just keep it in the business account for time being and keep logs of it in my books?

Just want to make sure everything is done according to the book and in a rightful way in order to prevent possible complications down the line.

Feedback and assistance would be greatly appreciated.

 

[OMB]

SARS provide some good advice in plain pretty English here

 

[SauRoNZA]

As far as I know you are not meant to charge for VAT if you aren't registered for VAT.

So you shouldn't have it in the business account in the first place, nor need to keep it or backdate it because you shouldn't charge for it.

 

[Freshy-ZN]

Very simple:

If you are not VAT registered you cannot charge VAT on goods or services. If and when you do get a VAT number you may do so. Whilst not VAT registered your Invoices should be titled as "Invoice" and if you are they must be titled " VAT Invoice and have the VAT number on them.

How and why did you think you could charge VAT with no VAT number issued to you or your enterprise?

 

[The legal way]

Hi all,

Thanks for the feedback.

First off in my invoices there are no VAT nr, VAT amount nor mentioning of VAT Invoice.
My apologies if I was unclear in this regard.

I was under the impression that all invoices issued by the seller would be liable for the 14% VAT regardless of excluding the above mentioned.

Thanks for the feedback, in between I was able to get some helpful advise.