WHEN TO REGISTER FOR VAT / PAYE / UIF OR SDL
VAT is an indirect tax and is levied at a rate of 15% (14% up until April 2018) on goods and services supplied by a Company as well as on goods and services which a Company supplies. A company is legally required to register for VAT when it’s the sum of its taxable income (Standard Rated + Zero Rated Supplies) earned over a consecutive period of 12 months exceeds R1 million rand or is likely to exceed R1 million rand in a consecutive 12 month period. A company will need to register for VAT within 21 days after having reached the R1 million income / turnover point.
A company may also choose to voluntarily register for VAT with SARS where its income earned over a consecutive period of 12 months exceeded R 50 000.00
PAYE [Pay As You Earn] & UIF [Unemployment Insurance Fund]
In order to register with UIF (the Unemployment Insurance Fund) and PAYE (pay as you earn) you need to have at least 1 employee.
An employer is required to register with SARS for PAYE within 21 business days after becoming employing 1 or more employees unless none of the employees hired are liable for normal tax.
Registering for PAYE automatically registers and employer for UIF.
SDL (Skills Development Levy)
A Company does not need to register for SDL (Skills Development Levy) where the total salaries for a consecutive period of 12 months is less than R500 000.00. All employers whose salary payments for the 12 month period are over R500 000.00 must register as well as those employees who expect their salary payments for a consecutive period of 12 months to be above R500 000.00 must register for SDL with SARS.