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.
Can you charge VAT to someone who is not VAT registered?
What if your business isn’t registered for VAT? If your business isn’t registered for VAT, then you can’t charge VAT to your customers – but this also means that you can’t claim any VAT back. You have to register your business for VAT if its annual taxable sales are above the VAT registration limit.
Can a director be held responsible for unpaid VAT?
However, in the case of limited company tax liabilities such as VAT, PAYE, National Insurance contributions and corporation tax, company directors can be made personally liable in certain instances if payments are not made.
What happens if you take over a VAT registered business?
If you take over a VAT registered business, or part of a VAT registered business, from somebody else as a going concern, you may be liable to be registered (see paragraph 3.8 ). your registration date will be the date you take over the business you may be able to transfer the previous VAT registration number to yourself
When do you have to register for VAT as a going concern?
You may have to register for VAT if you take over a VAT-registered business as a going concern (see paragraphs 2.10 and 3.8 for further information). under any of the above categories, you’re a taxable person. As a taxable person, from the date that you’re required to be registered, you must account for VAT on all of your:
Can a director of an insolvent company demand VAT security?
Another power HMRC has in relation to VAT liabilities is to demand VAT security for any future businesses the director of the insolvent company is involved in. That VAT security can represent a significant sum of money, which can make it difficult to start a new business.
