What Taxes ?

[amarjits]

Hi,

I am a freelance Reseller...say i bought a PC from someone for R 1000...and sold it for R1200....

what taxes i am liable to pay...

and is it legal to do this ? ( as an individual...and not a company....without tax invoicing)


the best i know is i have to pay INCOME TAX on the Amount...but not sure...

Plz guide..

i get invoices for some items from my suppliers...but not for all..

 

[D3x!]

Hi,

I am a freelance Reseller...say i bought a PC from someone for R 1000...and sold it for R1200....

what taxes i am liable to pay...

and is it legal to do this ? ( as an individual...and not a company....without tax invoicing)


the best i know is i have to pay INCOME TAX on the Amount...but not sure...

Plz guide..

i get invoices for some items from my suppliers...but not for all..

what kind of supplier doesn't provide invoices?

i am no expert but i think you would pay turn over tax

 

[rwenzori]

I suggest you get some kind of accountant to explain it all to you - judging from your post you have much to learn. In simple terms you pay income tax on the profit your business makes, as a sole trader ( ie: not a CC or company or partnership ). In the example you gave that would be R200, but you can deduct expenses eg: if you had to pay a courier to bring you the stock. You need to run a set of books, however simple, to be able to produce proper accounts, else you have no idea how your business operations are doing, nor can you justify your figures to SARS if required. You might also see if you need to become a provisional tax payer.

 

[Celine]

you will pay on the R200. there is no need to get involved with getting an accountant as long as you keep accurate record of each transaction you do.