VAT Liability Date: When Vendors Must Charge and Collect VAT

• Entities conducting business in South Africa may need to register for VAT if they regularly supply goods or services, including foreign e-commerce providers supplying electronic services to South African customers
• Businesses making more than R1 million in taxable supplies within any 12 month period must register for VAT compulsorily, while entities with lower turnover can voluntarily register if they meet certain conditions
• Once the compulsory registration threshold is met, entities are considered vendors from the liability date subject to Commissioner confirmation, and must apply for registration within 21 business days
• Vendors must charge and collect VAT on all supplies made from the liability date even while waiting for registration confirmation, with prices deemed to include VAT whether explicitly stated or not
• Special provisions under sections 67 and 67A of the VAT Act apply to goods or services supplied under existing contracts that were concluded before the liability date

Source: sars.gov.za

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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