Introduction

Value-Added Tax (VAT) is a crucial component of South Africa’s tax system, requiring businesses to comply with strict regulations to avoid penalties. Whether you run a startup or a large enterprise, ensuring VAT compliance is essential. Marwick & Company provides expert VAT advisory services, guiding businesses through every aspect of VAT registration, submission, and compliance​.

What Is VAT?

VAT is currently charged at 15% on the supply of most goods and services. Businesses act as intermediaries, collecting VAT from consumers and remitting it to SARS. Proper VAT management is critical to ensure compliance and accurate tax reporting​.

VAT Registration Requirements

1. Compulsory Registration: Businesses with taxable supplies exceeding R1 million within 12 months must register for VAT.
2. Voluntary Registration: Businesses with turnover between R50,000 and R1 million can opt for voluntary registration.

Our VAT specialists at Marwick & Company assist businesses in determining the best registration strategy, ensuring smooth compliance​.

Filing and Payment Obligations

• VAT201 Returns: VAT returns are filed monthly, bi-monthly, or quarterly, depending on the business category.
• Payment Deadlines: VAT payments are due on the last business day of the month following the end of the tax period.

Marwick & Company ensures VAT returns are filed accurately and on time, preventing penalties and interest charges​.

Avoiding Common VAT Pitfalls

• Late submissions attract heavy penalties from SARS.
• Input Tax Errors arise when claiming VAT on non-qualifying expenses.
• Failure to Deregister after ceasing operations can lead to unnecessary administrative burdens.

Our VAT consulting services at Marwick & Company help businesses mitigate these risks, ensuring they remain compliant​.

Conclusion

Effective VAT management is crucial for maintaining financial stability and avoiding regulatory issues. Partnering with Marwick & Company ensures seamless VAT compliance and maximised input tax recovery​.