Rika Lintvelt | Senior Specialized Tax Administrator at PKF Port Elizabeth

Previously the VAT registration process entailed submitting VAT registration applications at the nearest SARS branch by appointment.

Due to an increase in VAT fraud, SARS changed the VAT registration process by introducing the electronic submissions of VAT applications. It appears that SARS now uses sophisticated risk engines to identify potentially fraudulent VAT registrations filed online.

The VAT Registration application is now required to be submitted through one of the following channels:

• E-Filing; is the mandatory channel except if the VAT application cannot be submitted via e-filing. If SARS requires any additional documents, SARS will contact you and request for the additional documents to be submitted at a SARS branch in person. The turnaround time on the VAT applications submitted via e-filing is 21 working days.
• If the VAT registration cannot be submitted via the e-filing channel for whatever reason, a SARS appointment should be booked.

SARS officials may also carry out a physical inspection of the business premises before the application is processed

It is compulsory to register for VAT under the following circumstances:

• where the value of taxable supplies made in any consecutive 12-month period exceeded or is likely to exceed R1 million; or
• where in terms of a written contractual obligation, the value of taxable supplies to be made in a 12-month period will exceed R1 million.

SARS will accept an application for voluntary registration if the value of taxable supplies made (or to be made) is less than R1 million but has exceeded R50 000 in the most recent consecutive 12-month period.

It is important that the correct documents are submitted with the VAT application. Failure to do so will result in a delay in processing the application. The prescribed supporting documents should be submitted through e-Filing or alternatively through the SARS website online query system or by branch appointment.

The following mandatory supporting documents must be submitted with the VAT registration application:

• Certified copy of the Entity's registration documents
• Certified copy of ID of the Public officer
• Proof of business address not older than 3 months
• Proof of residential address of the Public officer not older than 3 months
• SARS Power of attorney and copy of ID of tax practitioner if the application is submitted by a Tax Practitioner
• Certified copy of the tax practitioner's ID (if appointed)
• Latest 3 months bank statements of the Entity
• Proof of turnover exceeding R50 000 for voluntary VAT registrations or R1 000 000 for compulsory VAT registrations
• Copy of the minute / resolution appointing the Public officer of the Entity

It is important to note that the latest changes now include the tax compliance status of both the Entity and the Public Officer to be compliant. Where a Public Officer is non-compliant, SARS will reject the VAT registration application. Therefor to avoid unnecessary delays, applicants should ensure that they remain compliant at all times.