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Value-Added Tax - Coggle Diagram
Value-Added Tax
Categories
Standard-rated
Subject to 15%
Vendors to pay it to SARS
Input VAT claimable
Zero-rated
Levied at 0% (so none payable)
Section 11 - Goods/ services
Input VAT claimable
Exempt
Not taxable
Section 12 - Goods/ supplies
Input VAT not claimable
May not register as VAT vendor
Definitions
VAT vendor
Person = individual, sole trader, partnership, company, trust fund, municipality
VAT vendor = any person registered or required to register under VAT Act
Responsibilities
Collection/ levying VAT
Issuing tax invoices - 21D
Retaining records - 5Y
Submitting VAT returns
Paying VAT liability
VAT
Tax added to cost of good or service
Revenue generation for govt
Thresholds
Compulsory
R1 million, 12 months
Voluntary
R50,000 < x < R1 million