Question:  Who needs to register for vat?

Answer:  Persons who make taxable supplies in excess of R1 million (from 1 March 2009) in any 12-month consecutive period are liable for compulsory VAT registration, but a person may also choose to register voluntarily provided that the minimum threshold of R50 000 (from 1 March 2010) has been exceeded in the past 12-month period.

Persons who are liable to register, and those who have registered voluntarily, are referred to as vendors.

Vendors have to perform certain duties and take on certain responsibilities if they are registered or liable to register for VAT. For example, vendors are required to ensure that VAT is collected on taxable transactions, that they submit returns and payments on time, that they issue tax invoices where required, that they include VAT in all prices advertised or quoted etc.

Question:  Who qualifies for Turnover tax?

Answer:  Turnover Tax will be available to individuals (sole proprietors), partnerships, close corporations, companies and co-operatives. The qualifying turnover of such a business should not exceed the amount of R1 million in any year of assessment. Qualifying turnover is the total amount received by a business for the year of assessment from carrying on business activities. Turnover Tax is voluntary and you can choose whether you want to remain with the current tax system or change to the simplified tax system

Question:  Who needs to register for income tax?

Answer:  Not everybody has to register for income tax and then submit tax returns. Generally, you need to register and submit a tax return if you receive employment income that exceeds a specified annual amount: for the 2009 year of assessment that amount is R60 000. However, under certain conditions you may need to submit a return even if your salary does not exceed this amount. For instance when you are a member of a close corporation.