Page 38 - Nexia SAB&T Business in South Africa Guide 2024

Key Features
■ Enterprises with a turnover of less than R1 000 000 in any period of
12 months are not obliged to register for VAT.
■ Enterprises with a turnover of less than R50 000 in any period of 12 months
are not permitted to register for VAT.
■ VAT returns are generally submitted on a two monthly basis unless turnover
in any period of 12 months exceeds R30 million, in which case returns are
submitted monthly.
■ Farmers may submit VAT returns on a six monthly basis as long as their
turnover does not exceed R1.5 million and property letting companies and
trusts may, subject to certain requirements, submit annual VAT returns.
■ Vendors may reclaim the VAT element on expenditure incurred for the purpose
of making taxable VAT supplies except on, entertainment, excluding qualifying
subsistence, passenger vehicles (including hiring) and club subscriptions.
■ Input tax credits may not be claimed on expenditure relating to exempt
supplies.
■ Input tax credits may only be claimed upon receipt of a valid tax invoice.
■ In order to be a valid tax invoice the name, address and VAT registration
number of the recipient and supplier must appear on tax invoices where the
VAT inclusive total exceeds R5 000.

Capital Gains Tax (CGT)
Persons subject to CGT
CGT is payable on capital gains that arise by the following persons:
■ Residents are subject to CGT on all assets including overseas assets.
■ Non-residents are subject to CGT on immovable property or any right
or interest in a property situated in SA and any asset of a permanent
establishment through which a trade is carried on in SA.
Note: Any right or interest in a property includes a direct or indirect interest of at
least 20% held alone or together with any connected person in the equity share
capital of a company, where at least 80% of the value of the net assets of the
company is, at the time of the disposal, attributable to immovable property in SA.

36