Company Registration at CIPC, SARS, COID, CUSTOMS, CIDB & More
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For businesses in South Africa with a turnover of R2.3 million or more per annum, this is the threshold to register for Value-Added Tax (VAT). Registering for VAT (and getting your VAT registration number) is an essential part of doing business, not only because of the various benefits but also because you need a VAT number for contracts with the government and a Value Added Tax number for tender applications.
Other benefits include the credibility it lends to the business and its reputation, as well as the fact that you can claim VAT back on some products and services. For small business owners and entrepreneurs, understanding the process, timeline, and requirements of how to get a VAT Number can be overwhelming and time-consuming. This article will walk you through the steps on how long it takes to register for VAT, and how to expedite the process—especially with the help of our SAIT and SAIBA-registered tax specialists at Company Partners.
Goods and services in South Africa are subject to a consumption tax known as Value-Added Tax. Companies basically add VAT (15%) to the pricing of products and services sold to collect it for the South African Revenue Services (SARS). Let’s use a practical example. When you buy stock from a supplier for a construction project, or you buy a new laptop for the office, that extra 15% at the bottom of the invoice, that is Value-Added Tax.
Businesses, therefore, act as an intermediary for SARS to collect Value-Added Tax and send it to SARS on behalf of their customers, who ultimately pay the tax. Should a company that qualifies for VAT registration fail to register for a VAT number after 21 days of reaching the R2.3 million threshold, it will face penalties and hefty fines. To avoid this, it’s better to be in the know when and how to register for VAT, what the requirements are, and also how long the process typically will take.
Companies with a revenue of less than R2.3 million in 12 months are not required to register for Value-Added Tax. Companies whose annual revenue is more than R120,000 in taxable supplies per annum have the option to voluntarily register for Value-Added Tax.
The VAT registration process can vary in length depending on numerous factors. The time frame depends on whether you are already operating a trading company with all the neccessary proof and the speed at which SARS processes your application. The process can take anywhere between 10 days to 2 months.
Here is a breakdown of current timeframes at SARS:
When assisted by Company Partners, which has helped thousands of companies with VAT registration since 2006, and has SAIT and SAIBA-registered practitioners with over 30 years of experience, you can be VAT registered within as little as 48 hours! This, however, is not the norm when going at it alone.
The procedure is usually streamlined if your company is prepared and has all the required paperwork in order, such as an existing registration with the CIPC. This is where Company Partners can help you fast-track the process since we know what the requirements are and how to do it Online, Easy and Fast.
Make sure your company qualifies for the compulsory or voluntary requirements for VAT registration before submitting your application. Our experts at Company Partners can provide FREE consultations to help you figure out if your company is eligible for registration if you aren’t sure.
Having the following paperwork ready will help speed up the process:
The tax specialists at Company Partners will not only help you figure out what paperwork is required, but also help you collect it and act as your SARS company representative.
Once the paperwork is sorted, you can apply for registration using SARS’ online eFiling platform or alternatively, you can also go into one of SARS’ branches. The trick here, to avoid application delays or rejection owing to mistakes, is to complete the VAT registration process carefully.
Once again, Company Partners can assist in avoiding any mistakes and subsequent delays by completing the VAT registration correctly the first time around.
Once you have sent in your application, SARS will go through it. It usually takes 10 to 21 working days to finish the registration process if no additional verification is needed. Should your application be flagged for further verification or site visits, this may delay the process a couple of months.
With Company Partners consultants monitoring your application’s progress, you are guaranteed that SARS will receive any further information they need promptly, saving you time and effort.
Once approved, your unique VAT number will be issued by SARS to use for invoicing and contracts, and applying for tenders requiring Value-Added Tax compliance.
The penalties for backdated VAT payments and interest on overdue amounts can be harsh and derail your registration process. Not complying with the regulations can also stain your reputation and cause you to miss out on important opportunities to secure bigger contracts and win tenders.
With the assistance of the VAT Registration experts at Company Partners, you can expedite the registration process, often cutting the time it takes to register in half. You will not need to visit SARS offices or fill out complex paperwork, allowing you to concentrate on running your business.
Company Partners has been working with SARS for many years, so we’ve mastered the art of cutting down on red tape and preventing the typical pitfalls that cause delays. Our consultants have meticulously processed thousands of applications.
From the initial consultation all the way to application tracking, it’s all done online by Company Partners. You’ll be kept informed at all times and at every stage to track the progress of the process via email or text messages.
If you are unsure as to whether or not your company can register for VAT our experts will walk you through the steps and schedule a consultation free of charge.
After the documents are submitted, processing by SARS commences. Typically, this takes between ten and twenty-one days. When using with Company Partners, below is a high-level timeline! We can have your company VAT registered in as little as 2 working days!
After you’ve registered, you can get your VAT refund back on things like fuel, rent, and equipment that are directly relevant to your business.
We have Accountants who can assist you with Monthly Accounting, making sure your company Tax and VAT returns are submitted on time and that your company stays compliant with SARS.
If you need to register for VAT, or you need a VAT number fast, contact Company Partners today and schedule a FREE consultation with one of our friendly VAT Specialists. With Company Partners you have an all-encompassing solution to the complex and time-consuming world of VAT Registration for businesses in South Africa.