We’ll give a brief introduction on VAT specifically for SMMEs covering the following: 1. VAT Registration 2. Basic Principles of VAT 3. Pros and Cons 4. VAT Reporting

1. Demystifying VAT

2. Meet the team
Ilya Shihov
CEO, Co-founder of Rise
Skills:
More than 14 years of
business automation
experience
Certificates:
PMP ®, CIMA Rus,
1С:Enterprise Expert
Area:
Managerial and IFRS accounting,
Budgeting, Payroll accounting,
Consolidation reporting
Achmat Kazie
Business Development Director
Skills:
more than 15 years
experience working with
SMMEs
Certificates:
GTP(SA) BA(SA)
Area:
Certified Business Accountant and Tax
Practitioner responsible for product
development and customisation

3. VAT for SMMEs
1. VAT Registration Requirements.
2. 10 Principles of VAT.
3. Pros & Cons?
4. VAT Reporting.

4. • Voluntary vs Compulsory Registration
• Taxable supply:
• > R50 000 = Voluntary
• >R1 000 000 = Compulsory
VAT Registration Requirements

5. • Prices charged, advertised or quoted must include VAT.
• Vendors are responsible for timeous payments of VAT.
• VAT charged on supplies made (output tax) less VAT paid to your suppliers (input tax) and other permissible deductions = VAT due/refund
• Proof of input tax must be kept for at least 5 years.
• Exported goods can be charged at 0%.
• Cannot register for VAT if you primarily make exempt supplies.
• Must inform SARS of any changes within 21 days.
• Mistakes and errors to be reported as soon as possible.
• Multiple payment options are provided.
• Anonymous fraud reporting available.
10 Principals of VAT

6. • Pros
• Decrease your expenses
• Improves perception of the company
• Competitive edge
• Improves profitability
VAT Pros & Cons

7. • Cons
• Can affect cashflow
• Additional administration costs and time
VAT Pros & Cons

8. • Reporting Periods
• Two-monthly (Category A or B)
• A = period ending on the last day of January, March, May, July, September, November
• B = period ending on the last day of February, April, June, August, October, December
• Monthly (Category C)
• Turnover likely to exceed R30 million
• 6 monthly (Category D)
• Micro businesses
• Farming activities
• Annual (Category E)
• Company or Trust fund
VAT Reporting

9. • Submission of VAT201
• VAT return & payment due 25th day after the end of the VAT period
• Invoice/Accrual Basis
• Time of supply is the earlier of:
• Invoice issued
• Payment received
• Payment Basis
• VAT only paid on actual receipt of payment
VAT Reporting

10. Invoice basis vs Payment basis

11. VAT in Rise: Standard Accounting
• Fully SARS compliant
• Multiple reporting options

12. VAT in Rise: Standard Accounting

13. VAT in Rise: Standard Accounting

14. VAT in Rise: Standard Accounting

15. VAT in Rise: Standard Accounting
In Conclusion
• Rise: Standard Accounting caters for both VAT and Non-VAT registered
entities.
• Work in a copy of your Live data to see how VAT registration can benefit your
company.

16. About Rise SA Business Solutions
Rise SA develops complete business management and accounting
software solutions, employing best-in-class developers, certified
accounting consultants, and experienced product managers.
As an official 1C partner, we create, implement and support business
management software, such as accounting, payroll accounting, ERP and
CPM solutions.

17. Our products
1. Rise: Standard Accounting
2. Business Management
3. 1C: ERP

18. Useful links
www.risebiz.co.za
www.standardaccounting.co.za
www.1c-dn.com

19. Thank You
Contacts:
Achmat Kazie
Business Development Director
Email: akazie@risebiz.co.za
Cell: 082 711 8518
Website:
www.risebiz.co.za
www.standardaccounting.co.za