Key Concepts (Grade 12 NSC Matric Accounting): Flashcards
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Definition of VAT
Definition of VAT
Tax charged on goods & services when sold
Current VAT rate in South Africa
Current VAT rate in South Africa
14%
Compulsory VAT registration threshold
Compulsory VAT registration threshold
Annual turnover exceeds R1-million
VAT input
VAT input
VAT paid on business purchases; can be claimed back from SARS
VAT output
VAT output
VAT collected from customers; must be paid to SARS
Zero-rated items
Zero-rated items
Items charged at 0% VAT (rate can change)
VAT-exempt items
VAT-exempt items
Items completely excluded from VAT system
Examples of zero-rated items
Examples of zero-rated items
Fresh fruits, brown bread, milk, maize, rice, cooking oil
Examples of VAT-exempt items
Examples of VAT-exempt items
Interest charges, export services, educational services
Voluntary VAT registration eligibility
Voluntary VAT registration eligibility
Businesses with turnover below R1-million