VAT Registration

Snyper564

Snyper564

Honorary Master
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Hey guys,

So just completed the VAT registration for my wife's business yesterday along with all required documents.

VAT liability date is 2 Dec 2024, payment basis is selected.

Now my question is any payments she receives from 2 Dec till VAT number is issued then I believe should attract VAT BUT these invoices dont have VAT noted.

Does she just issue a credit not ASAP when that VAT number is issued once officially registered and then all subsequent invoices?
 
acidrain said:
This is all I could find, which in itself neither option has an acceptable response.


There's a post on TaxTim with a response that until you receive your VAT number, you cannot charge VAT.

Other than that, probably best to get in touch with your tax practitioner.
Click to expand...
yeah already found those. Was hoping someone would now, I know my income tax inside on VAT im comfortable with the day to day ops but just not this weird quirk
 
It's such an edge case I doubt SARS cares one way or another whether you collect VAT in those very first few days or months from registration. You weren't collecting it in the X years prior after all.

Personally I would just not make it a VAT invoice until I have the number. If you are worried and can afford to, defer the invoices themselves. Otherwise, build in 15% but don't call it VAT.

SARS cares much more about VAT input tax i.e. refunds. From your perspective, you do not want clients to be attempting to claim VAT back on invoices you've issued without a valid number. They may be asked to submit them to SARS and they may be disputed with ramifications for both of you.
 
Tomtomtom said:
It's such an edge case I doubt SARS cares one way or another whether you collect VAT in those very first few days or months from registration. You weren't collecting it in the X years prior after all.

Personally I would just not make it a VAT invoice until I have the number. If you are worried and can afford to, defer the invoices themselves. Otherwise, build in 15% but don't call it VAT.

SARS cares much more about VAT input tax i.e. refunds. From your perspective, you do not want clients to be attempting to claim VAT back on invoices you've issued without a valid number. They may be asked to submit them to SARS and they may be disputed with ramifications for both of you.
Click to expand...
Thanks!

Also managed to find this

1735037754925.png
 
That makes sense but I would also take into consideration the line of business, frequency of invoicing, and whether clients are VAT-registered themselves.
 
Just be sure that inbound invoices on which you wish to claim input VAT are proper and correct, including the registered business name (as for VAT) or trading name, and your VAT number, because SARS will demand to see those for the first few months - ask me how I know.
 
spacemuis said:
Just be sure that inbound invoices on which you wish to claim input VAT are proper and correct, including the registered business name (as for VAT) or trading name, and your VAT number, because SARS will demand to see those for the first few months - ask me how I know.
Click to expand...
Thanks will do.

These are pretty much nonexistent as business is run from home with basically no overheads but will bear in mind if relevant.
 
To wrap this up I was at the branch today and got the number so was quite painless.

need to issue credit notes for one batch of invoices and carry on as normal now :)
 
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