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Back To Basics For Small Businesses
Back To Basics For Small Businesses
It is mandatory for a person to register for VAT if the taxable supplies made or to be made is, in
excess of R1 million in any consecutive twelve-month period.
A person may also choose to register voluntarily if the taxable supplies made, in the past period of
twelve months, exceeded R50 000.
The VAT 101 application for registration must be submitted in person at the SARS branch nearest to
the place where your business is situated or carried on.
A registered tax practitioner can register your business for VAT on your behalf.
Registering For Employees’ Tax [Pay-As-You-Earn (PAYE)]
An employer must register with the SARS within 21 business days after becoming an employer,
unless none of the employees are liable for normal tax.
Employees’ Tax refers to the tax required to be deducted by an employer from an employee’s
remuneration paid or payable. The process of deducting from remuneration as it is earned by an
employee is commonly referred to as PAYE.
The amounts deducted or withheld must be paid by the employer to SARS on a monthly basis, by
completing the Monthly Employer Declaration (EMP201). The EMP201 is a payment declaration in
which the employer declares the total payment.
Employers are required to submit their Employer Annual Reconciliations by 31 May to SARS,
confirming or correcting payroll tax amounts which were declared in respect of the tax period.
An employer who is registered or required to register with SARS for PAYE and/or Skills Development
Levy (SDL) purposes, is also required to register with SARS for the payment of Unemployment
Insurance Fund (UIF) contributions to SARS.