tax PRACTITIONER CONNECT (issue 2 - Nov 2015)

Welcome to the latest edition of the Tax Practitioner's Connect, the electronic newsletter for tax practitioners that keeps you up to date with the tax matters that affect you.

To read our newsletter below, click on each heading to expand the corresponding article. 

 

Legislative changes for Collective Investment Schemes (CIS) and Value-Added Tax (VAT) which were recently introduced and from 9 October 2015 accommodated in our systems, will improve the registration process and ease the administrative burden on taxpayers.
 
The legislative changes and a new, more inclusive list of Nature of Entities (NOE) are included on both eFiling and the Registration, Amendments and Verification (RAV01) form. The following changes were introduced:
 

The Registration, Amendments and Verification (RAV01) form

The RAV01 form has been updated to reflect a more comprehensive list of Nature of Entities (NOE).
 
  • Registration of funds such as provident, retirement and annuity funds are now a separate NOE option  “Funds” on the revised RAV01 form
  • The “Partnership” and “Body of Persons” NOE have been separated to enable the application of different rules to their entity types
  • The word “Institution” was added to the “Government/Public/State Owned Entity” NOE and going forward will read “Public/State Owned/Government Institution”, to ensure a comprehensive description of the NOE

Collective Investment Schemes

  • CIS entities will be able to register as either a trust or a company for income tax purposes
  • CIS in securities will be allowed to select any preferred month as their financial year end and will no longer be restricted to using February as was previously the case
  • Amended registration rules will allow CIS entities in property or outside South Africa to register companies for income tax purposes and to get a company registration number.

Voluntary VAT Registration

The recently introduced VAT Regulations make provision for the registration of vendors who have not yet made taxable supplies exceeding R50 000 per year. The newly implemented system changes facilitate the proper processing of voluntary VAT registration applications for vendors who have not yet made taxable supplies exceeding R50 000 but expect to reach this target within the 12 month period starting from the date of registration.
 

Reclassification of Category F Vendors

From 1 July 2015, the “Category F” tax period (being periods of four months ending June, October and February) was deleted.  In light of this change, SARS has changed existing “Category F” vendors to “Category B” vendors.
 
The first “Category B” tax period was for the months of July and August 2015 (VAT return and payment was due in September 2015). Going forward, tax periods will be periods of two months ending in October, December, February, April, June and August. Should a vendor wish to change the tax period category from “Category “B” to any other applicable tax period they may do so by submitting a written request to the nearest SARS branch.

 

Last Updated: 16/05/2016 2:43 PM     print this page
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