Value Added Tax (VAT)

 

VAT- indirect and regressive form of taxation. 

Regressive taxation - everybody pays VAT regardless of their income. 

  • VAT accounts for approx ¼ of governments revenue 

  • It falls under the VAT act (law)

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VAT vendors 

  • A business has the option of registering as a VAT vendor if turnover exceeds R50000/anum → businesses often register as VAT vendors as they can then claim back from SARS. 

  • It is compulsory for businesses with a turnover of more than R1 million to register as a VAT vendor

  • SARS is paid on the 25th of every second month

References

  • Anon., 2007. The Answer series: Grade 11 Accounting. 2007 ed. Cape Town: The Answer.

  • Anon., 2019. Investopedia. [Online]. Available at: https://www.investopedia.com/ [Accessed 3 October 2019].

  • Doctor, K., 2015. FLIPHTML5. [Online]. Available at: http://fliphtml5.com/fkul/mgtf/basic [Accessed 1 October 2019].

  • T Hall, D. W. P. S. A. A. P. G. P. F., 2017. Accounting Study Guide. 2016 ed. Musgrave: New Generation Publishers .

Neha Pillay (2019)

Grade 10Keroshan PillayComment