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Whats the difference
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Author:  ITguy [ Fri Dec 09, 2005 11:57 am ]
Post subject:  Whats the difference

Hi Lourie

Whats the difference between the Tax and VAT issues of a freelancer like me, and a Ltd company?

Much appreciated,

Gus

Author:  Huisinga [ Wed Oct 19, 2011 9:27 am ]
Post subject:  Re: Whats the difference

Tax (Income tax) is payable on your net profits that you make with your business. (You are registered for this) VAT (Value-added tax) is payable on your net taxable supplies. Net taxable supplies is calculated by taking all the vat on your invoices that make out to your clients less the vat on your expenses that qualify for vat. To register for vat, you can download the forms from SARS's site and submit them with copies of the main members' ID's, 3 months bank statements, proof of address and financial information substatiating the proof of how much you think your taxable supplies are going to be. SARS has gotten quite strict with the VAT registerations due to fraud.

Author:  spider [ Thu Jan 12, 2012 1:12 pm ]
Post subject:  Re: Whats the difference

Sales tax is retail only. Value-Added tax is a tax at every step of the inventory process, like you are taxed at every step from manufacturer to distributor to warehouser to retailer to customer.

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