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EFFECTIVE DATE 2010.03.01

REFERENCE GUIDE FOR COMPLETION OF

VAT REGISTRATION APPLICATION FORMS

AS-VAT-08

Revision: 6 of 23

REFERENCE GUIDE

COMPLETION OF VAT REGISTRATION

APPLICATION FORMS




AS-VAT-08

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TABLE OF CONTENTS

1 PURPOSE 3

2 SCOPE 3

3 APPLICATION FOR REGISTRATION BY PERSONS WHO HAVE NOT YET BEEN AWARDED A TENDER 3

4 REFERENCES 3

4.1 LEGISLATION 3 4.2 CROSS REFERENCES 3

5 DEFINITIONS AND ACRONYMS 3

6 INSTRUCTIONS FOR COMPLETING OF THE VAT 101 / 102 APPLICATION FORM 6

6.1 PARTICULARS OF PERSON / APPLICANT APPLYING / LIABLE FOR REGISTRATION 7 6.2 PARTICULARS OF ENTERPRISE 9 6.3 PARTICULARS OF OTHER ENTERPRISES / BRANCHES / DIVISIONS 11 6.4 FINANCIAL PARTICULARS 12 6.5 PARTICULARS OF 2 MOST SENIOR PARTNERS / MEMBERS / DIRECTORS / SHAREHOLDERS /

TRUSTEES 15 6.6 PARTICULARS OF REPRESENTATIVE VENDOR 16 6.7 PARTICULARS OF EXTERNAL AUDITOR / BOOKKEEPER / ACCOUNTANT / TAX PRACTITIONER

(WHERE APPLICABLE) 18 6.8 BANKING PARTICULARS 18 6.9 ATTACHMENTS REQUIRED OF PERSON APPLYING FOR REGISTRATION 19 6.10 DECLARATION BY REPRESENTATIVE VENDOR 22 6.11 NOTES 22

7 SUBMISSION OF APPLICATION FORM TO SARS 22

8 QUALITY RECORDS 23

9 DOCUMENT MANAGEMENT 23




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1 PURPOSE

The purpose of the guide is to assist persons with the completion of the application for VAT registration.

2 SCOPE

This guide is intended to assist all:

Persons who are liable to register for VAT in terms of the VAT Act.

Persons who are not liable to register for VAT in terms of the VAT Act.

3 APPLICATION FOR REGISTRATION BY PERSONS WHO HAVE NOT YET BEEN AWARDED A TENDER

Discussions have been held with the State Tender Board who has been informed that applications for VAT registration by persons, who have not as yet been awarded a tender, would be denied due to the fact that the relevant provisions of the VAT Act would not have been met.

If a person is registered in anticipation of being awarded a tender and the tender is not awarded, the person will have to de-register. The unnecessary registration place an unnecessary administrative burden on SARS and the person concerned.

A person, who does not meet the requirements of the definition of “enterprise” read with section 23 of the VAT Act, should not be registered as a vendor.

It follows however, that once a person has been awarded a tender, the application for registration as a vendor will be considered, provided the requirements of the VAT Act are met.

4 REFERENCES

4.1 LEGISLATION

TYPE OF REFERENCE REFERENCE

Legislation and Rules administered by SARS:

Value-Added Tax Act No. 89 or 1991

Other Legislation: None

International Instruments: None

4.2 CROSS REFERENCES

DOCUMENT # DOCUMENT TITLE APPLICABILITY

VAT 404 Guide for VAT Vendors All

AS-VAT-12-FAQ1 VAT Registrations Frequently Asked Questions All

5 DEFINITIONS AND ACRONYMS

Commissioner The Commissioner for SARS

Enterprise Any business activity in the broadest sense. It includes any activity carried on:

continuously or regularly; by any person; in or partly in the RSA; in the course of which goods or services are supplied for a consideration,

i.e. some form of payment; whether or not for profit. Special inclusions- Public authorities – certain government departments and provincial




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authorities. Municipalities – municipalities, Joint Services Board (JSB) and Regional

Services Council (RSC). Welfare organisations and Foreign Donor Funded Projects. Share block companies.

The following activities are excluded from “enterprise” activities and will therefore not attract VAT:

Services rendered by an employee to his employer, e.g. salary / wage /

remuneration earners. This must, however, be distinguished from an independent contractor who is not excluded;

Private or recreational pursuits or hobbies (unless carried on like / as a business);

Any exempt supplies (listed in section 12 of the VAT Act); and Supplies by persons who are not vendors; Supples by constitutional institutions.

Exempt supplies Goods and services exempt from VAT and in respect of which no input tax may be claimed.

Goods Goods are movable things, fixed property and any real right in any such thing or fixed property. It does not, however, include money, a right under a mortgage bond or stamps, forms or cards which have a money value and have been sold / issued by the State, e.g. revenue stamps.

Representative vendor

The natural person who is a resident of South Africa responsible for duties imposed by the VAT Act:

On any company shall be the public officer thereof contemplated in section 101 of the Income Tax Act.

In case of any company placed in liquidation the liquidator thereof.

On any Public authority shall be the person responsible for accounting for receipt or payment of moneys under the provisions of any law or for the receipt or payment of moneys or funds on behalf of such public authority.

On a municipality shall be any person responsible for accounting for the receipt and payment of moneys or funds on behalf of such a municipality.

On any corporate or unincorporated body (other than a company) shall be the person who is the treasurer of that body or whose functions are similar to those of a treasurer of that body.

On a person under legal disability shall be his guardian, curator or administrator or the other person having management or control of his affairs.

On any person who is not a resident of the republic or any person (other than a company) who is for the time being out of Republic, shall be any agent of such person controlling such person‟s affairs in the Republic or any manager of any enterprise of such person in the Republic.

On a deceased person or his estate shall be the executor or administrator of such estate.

On an insolvent person or his estate shall be the trustee or administrator of such estate.

On any trust fund shall be the person administering the fund in a fiduciary capacity.




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On a foreign donor funded project shall be any person responsible for accounting for the receipt and payment of moneys or funds on behalf of such foreign donor funded project.

Resident Means any:

natural person who is ordinarily resident in the Republic: or not at any time during the relevant year of assessment ordinarily resident in the Republic, if that person was physically present in the Republic for a period or periods exceeding 91 days in aggregate during the relevant year of assessment, as well as for a period or periods exceeding 91 days in aggregate during each of the three years of assessment preceding such year of assessment; and for a period or periods exceeding 549 days in aggregate during such three preceding years of assessment, in which case that person will be a resident with effect from the first day of that relevant year of assessment provided that a day shall include a part of a day, but shall not include any day that a person is in transit through the Republic between two places outside the Republic and that person does not formally enter the Republic through a „port of entry‟ as contemplated in section 9(1) of the Immigration Act, 2002 (Act No. 13 of 2002), or at any other place in the case of a person authorised by the Minister of Home Affairs in terms of section 31(2)(c) of that Act; and where a person who is a resident in terms of this subparagraph is physically outside the Republic for a continuous period of at least 330 full days immediately after the day on which such person ceases to be physically present in the Republic, such person shall be deemed not to have been a resident from the day on which such person so ceased to be physically present in the Republic; or person (other than a natural person) which is incorporated, established or formed in the Republic or which has its place of effective management in the Republic, but does not include any person who is deemed to be exclusively a resident of another country for purposes of the application of any agreement entered into between the governments of the Republic and that other country for the avoidance of double taxation;

Person or any other company shall be deemed to be a resident of the Republic to the extent that such a person or company carries on in the Republic any enterprise or other activity and has a fixed or permanent place in the Republic relating to such enterprise or other activity.

SARS South African Revenue Service

VAT Act The Value-Added Tax Act, No. 89 of 1991

Vendor A person who is or is required to be registered under the VAT Act.




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6 INSTRUCTIONS FOR COMPLETING OF THE VAT 101 / 102 APPLICATION FORM

Note: Before completing your application please read the following instructions.

Should you experience any difficulty in completing the VAT 101 form, you are welcome to contact the SARS contact centre (0800 007 277) or visit the SARS website (www.sars.gov.za).

Additional information may be obtained in the VAT 404 guide (VAT Guide for Vendors), which is available on the SARS website: www.sars.gov.za or at your local SARS branch office.

The application for registration form consists of the following parts:

Particulars of person applying / liable for registration;

Particulars of enterprise;

Particulars of other enterprises / branches / divisions (only applicable to VAT 101);

Financial particulars;

Particulars of 2 most senior partners / members / directors / shareholders / trustees;

Particulars of representative vendor;

Particulars of external auditor / bookkeeper / accountant / tax practitioner;

Banking particulars;

Attachments required of person applying for registration;

Declaration by representative vendor;

Notes.

Print clearly, using a blue or black pen only.

Use BLOCK LETTERS and print one character in each block. Example:

M A G S N A I D O O

Place an X in the relevant choice blocks.

Any alterations on the application form must be initialled.

You are obliged to make a full and accurate disclosure of all relevant information on the application form. Misrepresentation, neglect, furnishing false information or non-submission of your application could lead to prosecution.

The application must be signed by the applicant. If the application is not signed it will be regarded as not having been received by SARS. This could result in unnecessary delays in registration or rejection by SARS.

Once completed, you are required to submit the application in person to your local SARS Branch Office falling in the area where your business is situated.

The turnaround time for the application to be processed will depend on successful validation and verification of information and possible business premises visits.

Once the registration has been successfully processed, you will receive a VAT registration certificate (VAT 103).

You can also check if your registration has been processed by entering your details under

“VAT vendor search” on the SARS website. [Go to � www.sars.gov.za � TAX TYPES � VAT � VAT Vendor Search].

SARS employees are not allowed to advise you verbally of your VAT registration number.

http://www.sars.gov.za/





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6.1 PARTICULARS OF PERSON / APPLICANT APPLYING / LIABLE FOR REGISTRATION

Note: This part requires details of the entity requesting registration. 6.1.1 NATURE OF PERSON

Indicate applicable corresponding letter for nature of person in block provided on the right hand side.

(e.g. In the case of an Individual complete an A in the box) 6.1.2 INITIALS

Where the nature of person is an individual, insert the initials of the individual in the blocks provided, for example:

My name is Mags Sidoney Naidoo, my initials would read M S

If the nature of the person is anything other than an individual, leave the blocks BLANK. 6.1.3 LEGAL NAME

In the case of an individual, “legal name” refers to the surname only.

In the case of a partnership, company, etc, the business or organisation name that appears on all official / legal documents must be completed.

Registration is based on the legal entity not the trading name.




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Legal names and trading names may differ. 6.1.4 TRADING OR OTHER NAME

The trading name is the name under which your business trades. It is commonly the name known by your suppliers or customers and it may be different from your business‟ legal name.

If the trading name is the same as the legal name, rewrite the name but DO NOT write „as above‟, „not applicable‟ or „n/a‟.

If your business has more than one trading name, provide the trading name for the main activity in the blocks provided and a separate list of all other trading names as an annexure to the application form.

6.1.5 DATE OF FINANCIAL YEAR END

This is usually the end of your accounting period of 12 months. However if the enterprise is an individual, the date of the financial year end will always be the last day of February, for example:

2 8 0 2 6.1.6 PREFERRED LANGUAGE

Place an X in the relevant choice block to select your preferred language of communication. 6.1.7 INCOME TAX REFERENCE NUMBER

Record the Income Tax reference number in the blocks provided.

If your business is a partnership, record the Income Tax reference number of the most senior partner.

Where the entity is not registered for Income Tax purposes, leave the blocks BLANK. 6.1.8 PAYE NUMBER

Record the PAYE number of the applicant in the blocks provided.

If your business is a partnership, record the PAYE number of the most senior partner.

The PAYE number is a ten digit number that starts with a 7. 6.1.9 DATE OF BIRTH

For an individual, record the date of birth of the individual.

The date should be recorded in the following format: year / month / day

For entities other than an individual, leave the blocks blank. DO NOT write „not applicable‟ or „n/a‟. 6.1.10 IDENTITY NUMBER

For an individual, record the identity number of the individual.

For entities other than an individual, leave the blocks blank. DO NOT write “not applicable” / “N/A”. 6.1.11 REGISTRATION NUMBER OF COMPANY / CC / TRUST / FUND

The registration number is the number supplied by the Registrar of Companies on successful registration of the entity.




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Record the registration number of the entity in the blocks provided.

If the number provided is not valid, the processing of this application will be delayed.

Where the entity does not have a registration number, leave the blocks BLANK. 6.1.12 REGISTRATION NUMBER OF CO-OPERATIVE

Record the registration number of the entity in the blocks provided.

Where the entity does not have a registration number, leave the blocks BLANK. 6.1.13 IF NOT SOUTH AFRICAN RESIDENT STATE COUNTRY OF RESIDENCE

Where a person does not fall within the definition of a “resident” in terms of the Income Tax Act, 1962, that person is not a South African resident for income tax purposes and needs to complete the country of residence.

Where the person satisfies the definition of “resident”, leave the blocks BLANK. 6.1.14 PASSPORT NUMBER

For an individual (not a RSA resident), complete the individual‟s passport number in the blocks provided.

For entities other than an individual, leave the blocks BLANK. DO NOT write „not applicable‟ or „n/a‟.

6.2 PARTICULARS OF ENTERPRISE




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Note: This part allows the applicant to provide the particulars of the enterprise with specific reference to the address information.

6.2.1 RESIDENTIAL ADDRESS AND HOME TELEPHONE NUMBER (APPLICABLE TO INDIVIDUALS

ONLY)

These fields are to be filled in by a sole proprietor and require the residential address of the individual and the contact telephone number at the residential address.

The telephone number should commence with the area code, for example:

0 1 1 3 2 4 2 4 5 3 6.2.2 PHYSICAL BUSINESS ADDRESS OF THE ENTERPRISE AND BUSINESS TELEPHONE NUMBER

These fields must be completed by all applicants and require the address of the business‟ physical location. This cannot be a post office box number.

If an individual carries on an enterprise at his / her place of residence, the residential address should be filled in here in order to indicate that the person carries on an enterprise at his / her residential address.

This must not be the address of your external auditor / bookkeeper / accountant / tax preactitioner.

Similarly, the telephone number at the physical address must also be furnished. Where there is no landline telephone number, write an alternate contact telephone, (if applicable) or cellular phone number in the cellular phone number field.

The facsimile number need not be physically situated at the place of business and serves as an alternate means of contact. (e.g facsimile messages)

Both numbers should commence with the area code. If you have a “086” facsimile number, complete the “086” as the area code and the rest of the number as the facsimile number.

6.2.3 CELLULAR PHONE NUMBER

Provide the cellular phone number of the most senior partner, member, director, shareholder, trustee or individual.

6.2.4 E-MAIL ADDRESS

Provide email address where applicable. 6.2.5 WEBSITE ADDRESS

For your website address, print it exactly as it appears on your website using UPPER CASE and lower case where necessary, for example:

w w w . w e b s . g o v . z a 6.2.6 POSTAL ADDRESS

Provide the private bag or post box address of the enterprise in the Republic.

If the postal address is the same as the physical address, the information must be recorded under both headings.




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6.2.7 STATE MAIN ACTIVITY

Describe the main activity from which the applicant derives the majority of its business income, (e.g. Agriculture, Forestry, Fishing, Mining, Construction, Trade, Manufacturing, etc.).

6.2.8 TRADE CLASSIFICATION CODES

Download a copy of the Trade Classification Guide for Vendors and Employers (VAT 403) from the SARS website www.sars.gov.za or obtain a copy from your local SARS Branch Office.

6.3 PARTICULARS OF OTHER ENTERPRISES / BRANCHES / DIVISIONS

Note: This part determines whether the branches or divisions of your business require a separate registration for VAT purposes:

A vendor may separately register any enterprises, branches or divisions carried on by him / her separately for VAT purposes. Therefore, it is possible for a vendor to have more than one VAT registration number if the enterprise is carried on in branches or divisions.

A separate VAT 102 form must be completed for each enterprise / division / branch for which a separate registration is required.

If you encounter any difficulty in determining whether your business requires a separate registration, consult the VAT 404 guide (VAT Guide for Vendors), which is available on the SARS website: www.sars.gov.za or from your local SARS branch office.

6.3.1 STATE THE NUMBER OF ENTERPRISES / BRANCHES / DIVISIONS IF SEPARATE ENTERPRISES /

BRANCHES / DIVISIONS ALSO EXIST IN THE RSA

Enter the number of enterprises / branches / divisions that are linked to your present business in the blocks provided, for example:

0 0 3

Enterprises / branches / divisions situated outside South Africa must not be included.






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6.3.2 STATE THE NUMBER OF ENTERPRISES / BRANCHES / DIVISIONS FOR WHICH SEPARATE

REGISTRATION IS REQUIRED

Determine the number of enterprises / branches / divisions that require a separate VAT registration by referring to the VAT 404 guide and completing the relevant required number in the blocks provided, for example:

0 0 3

6.3.3 FURNISH THE TRADING OR OTHER NAME AND / OR EMPLOYER’S REFERENCE NUMBER (PAYE NO) OF ALL ENTERPRISES / BRANCHES / DIVISIONS INCLUDING THOSE FOR WHICH AN APPLICATION FOR SEPARATE REGISTRATION WILL BE MADE ON VAT 102 FORM

Although there is space available to accommodate the details of 5 enterprises / branches / divisions where there are more than 5 enterprises / branches / divisions, an annexure must be attached detailing them with the information required in this part.

Note: If your business does not have other enterprises / branches / divisions, ignore part 3.

6.4 FINANCIAL PARTICULARS




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Note: This relates to the financial particulars / status of the enterprise.

The information provided is required to determine:

whether your application is a compulsory or voluntary registration;

what tax period you fall under and how often your are required to submit your VAT returns; and

the accounting basis to calculate your VAT.

Brief explanations of some of the terms are detailed below. However, it is advisable to refer to chapters 2 to 6 of the VAT 404 guide before attempting to complete these fields.

6.4.1 ACTUAL / EXPECTED VALUE OF TAXABLE SUPPLIES

Furnish the actual value / expected total value of taxable supplies for a period of 12 months as required on the application form in the following fields:

Standard rated supplies;

Zero-rated supplies; and

Total value of taxable supplies (sum of standard and zero rated supplies)

The following fields must be completed to indicate the determination of the values completed for taxable supplies:

Is the determination of the value of taxable supplies based on actual or expected financial information? o The determination of the value of taxable supplies is from actual financial information (i.e.

from a preceding period of 12 months); or o The determination of the value of taxable supplies is based on expected financial data (i.e.

from the commencement of any month in a 12 month period)

State the source of financial information used to determine the value of taxable supplies (This is mandatory) o Complete in the space provided, the exact source(s) of information that you used. o Examples, of which can include but are not limited to, are accounting records such as cash

book, general ledger accounts, bank statements, bank deposit slips, sales invoices etc. 6.4.2 IS THIS A VOLUNTARY REGISTRATION WHERE THE ACTUAL OR ANTICIPATED TURNOVER HAS

OR WILL EXCEED R50 000?

A person can apply for voluntary registration even though the total value of taxable supplies (turnover) is less than R1 000 000 over a 12 month consecutive period.

There is however a requirement that the total value of taxable supplies (turnover) already made must have exceeded R50 000 in the past 12 month period. If your financial particulars fall within this category, record the answer to the question as “Y” in the block provided.

Note: You cannot record “Y” if the total shown under Total Value of Taxable Supplies exceeds R1 000 000.




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6.4.3 DATE ON WHICH THE ENTERPRISE COMMENCED / WILL COMMENCE

Complete the date your business/enterprise started or will start. This date should be when your business/enterprise first had or will have transactions.

6.4.4 DATE ON WHICH THE PERSON BECAME / WILL BECOME LIABLE FOR REGISTRATION

Complete the date on which the income earned from selling goods or fees earned from services supplied exceed R1 000 000 per annum or the date on which it is expected to exceed R1 000 000 per annum.

6.4.5 TAX PERIODS

Tax periods end on the last day of a calendar month. You may, however, apply to the a SARS Branch Office in writing for your tax period to end on another fixed day or date, which is limited to 10 days before or after the month end.

The following categories of tax periods are available. Place an X in the relevant block.

The tax periods of two months (Category A + Category B): o The Commissioner shall determine in which category you fall.

Monthly tax periods if total value of taxable supplies exceed R30 million (Category C): o Under this category you are required to submit one return for each calendar month. You will

be registered when: Your turnover exceeds or is likely to exceed R30 million in any 12 month period; Where you operate more than one business or operate a business with branches, the

sales must be added together to determine the total turnover; You have applied in writing for this category; or You have repeatedly failed to perform any of the obligations of a vendor.

The tax periods of six months (Farming – only if taxable supplies for 12 months do not exceed R1,5 million) (Category D): o Under this category you are required to submit one return for every six calendar months. o An individual‟s six month period will be on the last day of February and August. o A Company or Close Corporation‟s financial year end date will determine on which months

their tax periods will end. o You may, however, apply to the local SARS Branch Office to alter the end of the tax period

to another month.

The tax periods of twelve months ending on financial year-end (Category E): o Under this category you are required to submit one return for 12 calendar months o You can apply for this category if:

Vendor is a company or trust; Vendor‟s activity is letting of fixed property, renting of movable goods or

administrative management of only companies that are connected persons in relations.

The tax periods of four months, if taxable supplies for any 12 months do not exceed R1.5 million. o Under this category you are required to submit one return every four months ending on the

last day of June, October and February of the calendar year. 6.4.6 ACCOUNTING BASIS

There are two methods of calculating how you pay and claim VAT on your VAT return form. This is known as the invoice basis (or “accrual basis”) and the payments basis.

Vendors are generally required to account for VAT on the basis of invoices being issued or received. Unless the vendor applies in writing and qualifies to be registered on the payments basis, all vendors are registered on the invoice basis.




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6.5 PARTICULARS OF 2 MOST SENIOR PARTNERS / MEMBERS / DIRECTORS / SHAREHOLDERS / TRUSTEES

Note: This section collects information about the individuals associated with the applicant entity.

The type of associates for whom details must be completed are:

Companies - the 2 most senior directors (individuals);

Partnerships - the 2 most senior partners (may be individuals, companies, trusts or a combination);

Trusts - the 2 most senior trustees (may be individuals or companies); and

Other organisations - the 2 most senior office bearers (individuals).

The required details are:

Initials;

Surname / Company / Close Corporation name;

Income tax number;

Identity number;

Registration number of Company / CC / Trust / Fund;

Country of residence; and

Passport number (non-resident).




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6.6 PARTICULARS OF REPRESENTATIVE VENDOR

Note: If a vendor is not a natural person, it is necessary to determine who is responsible for performing the duties and obligations. This person is referred to as a representative vendor and is responsible for performing the duties imposed by the Act on the person whom they represent.

Before you provide information in this part, read the table below to determine who the correct representative vendor is in relation to the nature of the applicant.

The following persons are responsible for performing the duties imposed by the person whom they represent:

INSTITUTION CAPACITY DEFINITION

A company Public officer The nominee that holds a post of responsibility in the company, such as managing director, manger, shareholder or secretary or as appointed in default by the Commissioner. The appointment of an auditor or attorney who is not an employee of the company may not be accepted unless the assessing officer is satisfied that there are special circumstance warranting such appointment and then only if the registered address of the company is that of such auditor or attorney.

Any company in liquidation

Liquidator The person duly appointed to carry out a liquidation.

Any public authority Accounting Officer Any person responsible for accounting for receipt or payment of money under any law or for the receipt or payment of public funds on behalf of such public




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INSTITUTION CAPACITY DEFINITION

authority.

Any local authority

Accounting Officer Any person responsible for accounting for receipt or payment of money under any law or for the receipt or payment of funds on behalf of such local authority.

Any corporate or unincorporated body, other than a company

Treasurer

A person appointed to administer or manage the financial assets and liabilities.

A person under legal disability

Guardian, curator or administrator

A person legally responsible for someone unable to manage their own affairs.

A deceased person or his / her estate

Executor or administrator A person appointed by the testator to carry out the terms of the will.

An insolvent person or his / her estate

Trustee or administrator An individual or member of a board given powers of administration of property in trust with a legal obligation to administer it solely for the purposes specified.

6.6.1 INITIALS

Insert the initials of the representative vendor / person in the blocks provided, for example:

My name is, Mags Sidoney Naidoo, therefore my initials would read: M S 6.6.2 SURNAME

Insert the surname of the representative vendor / person in the blocks provided, for example:

N A I D O O 6.6.3 CAPACITY

Determine the capacity of the representative vendor by utilising the table above.

Place an X in the relevant choice block.

The capacity indicated in this field must be the same as completed in part 10 of the application form. 6.6.4 PHYSICAL ADDRESS, TELEPHONE NUMBER AND CELLULAR PHONE NUMBER

The physical address in South Africa of the representative vendor and not the post office box address must be provided.

The contact telephone number should be completed with the area code.

In addition the cellular phone number of the representative vendor / person must be provided. 6.6.5 E-MAIL ADDRESS

Use BLOCK LETTERS and print one character in each block, for example:

m y e m a i l @ s s r b . c o . z a




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6.7 PARTICULARS OF EXTERNAL AUDITOR / BOOKKEEPER / ACCOUNTANT / TAX PRACTITIONER (WHERE APPLICABLE)

Complete this block with the personal details of either:

The external auditor of the organisation;

The bookkeeper of the organisation;

The accountant of the organisation; or

Tax practitioner.

If you do your own books, leave these blocks blank.

6.8 BANKING PARTICULARS

If the applicant is entitled to a refund, SARS will only pay this directly into an account at a recognised financial institution located in South Africa.

If the bank account is not in the name of the vendor, a VAT 119i must be completed by the account holder to indemnify the Commissioner of the South African Revenue Service against any loss which might occur due to any refund or other payment transferred to the account of a third party other than in the name or the trading name of the vendor. Third party banking details may only be used if you are a holding / subsidiary or non-resident company.

Note: If an EFT participating South African Bank or a recognised financial institution‟s details are not provided, your application will be considered incomplete. If you are not sure of the actual bank details, contact the bank or financial institution concerned.




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6.9 ATTACHMENTS REQUIRED OF PERSON APPLYING FOR REGISTRATION

This part allows the applicant to provide SARS with the relevant supporting documentation. These documents must be attached to each type of application (e.g VAT 101 and VAT 102).

Tick the blocks on the left to indicate the document you are attaching together with your application.

It is very important that you submit the correct documents with your application to register. Failing to do so would result in delay in obtaining your VAT registration number.

Financial information to prove your turnover could include:

Audited financial statements;

Awarded tender contracts;

Signed contracts;

Sale agreements;

Signed lease agreements (the lessee and lessor can not be the same person)

No cashflow projections or business plans will be accepted.

6.9.1 SUPPORTING DOCUMENTS REQUIRED PER NATURE OF PERSON

Nature A (individual) supporting document requirements are:

Copy of ID document of the individual;

Original cancelled cheque or original letter from banker;

Copies of: o bank statements for the past three months but not older than one month from application; or o financial information listed in part 4 of the application form (only where less than three

months bank statements are available or where no bank statements are available);

In case of a practitioner, a letter of Authority / Power of Attorney to authorise the practitioner to act on behalf of the vendor; and

Copy of the business municipal account and copy of the residential municipal account of individual, partner or representative vendor;




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o In case of a married individual the municipality account in the name of the spouse may be accepted.

o If the property is leased, a copy of the lease agreement.

Nature B (partnership) supporting document requirements are:

Copy of ID documents of the two most senior partners of the partnership;




In case of a practitioner, a letter of Authority / Power of Attorney to authorise the practitioner to act on behalf of the vendor;

Copy of ID document of representative vendor; and

Copy of the business municipal account and copy of the residential municipal account of individual, partner or representative vendor. o If the property is leased, a copy of the lease agreement.

Nature C (company / CC) supporting document requirements are:

Copy of certificate of incorporation.

Copy of ID documents of the two most senior members / directors / shareholders / trustees of the company / CC / share block;





Copy of ID document of representative vendor;

Copy of the business municipal account and copy of the residential municipal account of individual, partner or representative vendor. o If the property is leased, a copy of the lease agreement; and

VAT 121 if tax period is category E.

Nature D ( local or public authority) supporting document requirements are:







Nature E ( association not for gain) supporting document requirements are:

Copy of memorandum, articles of association, or constitution governing the activities of the association not for gain


Copies of: o bank statements for the past three months but not older than one month from application; or




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o financial information listed in part 4 of the application form (only where less than three months bank statements are available or where no bank statements are available);




Nature F (estate / trust) supporting document requirements are:







Nature G (club) supporting document requirements are:

Copy of constitution of the club;







Nature H (welfare organisation) supporting document requirements are:

Copy of memorandum, articles of association, or constitution governing the activities of the welfare organisation







Nature I (trust) supporting document requirements are:

Copy of certificate of incorporation.

Copy of ID documents of the two most senior trustees of the trust;




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Copy of ID document of representative vendor;

Copy of the business municipal account and copy of the residential municipal account of individual, partner or representative vendor; and o If the property is leased, a copy of the lease agreement.

VAT 121 if tax period is category E.

6.10 DECLARATION BY REPRESENTATIVE VENDOR

This part is a declaration by the vendor or the representative vendor affirming that the information supplied in this application is true and correct and that all required documents are attached when submitted to SARS. It is also an affirmation by the vendor or the representative vendor that he / she is aware of his / her duties and responsibilities as per the Value-Added Tax Act, No 89 of 1991.

Once you have completed this application, you are required to read the declaration. When the applicant is satisfied that all of the information provided in the application is accurate and complete, the application form must be signed and dated in addition to recording the name and capacity of the representative vendor.

No power of attorney will be accepted for purposes of signing the VAT 101. It must be signed by the individual owner or representative vendor.

A tax practitioner may not sign the form on behalf of the representative vendor.

6.11 NOTES

It is recommended that all persons applying for VAT registration read the “Guide for Vendor” (VAT 404) and for a detailed guidance pertaining to Value-Added Tax. This guide is available on the SARS website: www.sars.gov.za

7 SUBMISSION OF APPLICATION FORM TO SARS





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As registration for VAT is area restricted you will be required to submit the application form to the SARS Branch Office falling in the area where the business is situated for validation of information.

Only personally presented applications by the individual owner / legal representative vendor / authorised registered tax practitioner will be accepted.

Application received via mail will only be accepted on a exception basis in cases where:

Applicants are geographically far away from the SARS Branch Office; and

Applicants cannot reach the SARS Branch Office due to a disability.

Please not that those applications that are posted or dropped into the SARS mailboxes at the branches may take longer to be processed.

8 QUALITY RECORDS

There are no Quality Records required for this document.

9 DOCUMENT MANAGEMENT

Designation Name / Division

Business Owner: Group Executive: Enterprise Business Enablement

Policy Owner: Group Executive: Enterprise Business Enablement

Author: Andre Ernst

Detail of change from previous revision: Updated the document with VAT 101 and budget changes.

Template number and revision POL-TM-07 REV. 3

reference guide completion of vat registration application ...keyfinancial.co.za/docs/vat.pdf ·...

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