Registering as a VAT Creditor

When a seller registers for VAT with SARS, they will become liable to pay VAT on their monthly earnings. The following steps outlines the process to follow when you are liable for VAT.

Apply to become a VAT creditor

In order for us to support you, we need to be aware of your VAT status with SARS. Please send a request to [e-mail] letting us know when you become liable for VAT so that we can register you as VAT creditor and process your invoice. We require the following information:

1. Registered company name
2. Company registration no
3. SARS VAT registration no.
4. Billing address
5. Contact details
6. Commencement date (when you want to switch over to the VAT process)

Once you have been approved as VAT creditor we will provide our billing information to be used when raising a tax invoice. 

Selling price adjustments

Once you have been approved as a VAT creditor, you may wish to increase your pricing to accommodate for the VAT portion you are going to be paying SARS. Alternatively you may choose to leave your pricing unchanged and absorb the VAT yourself. The selling price will be the amount presented to the customer and must be considered fully inclusive of all transaction fees and VAT.

Raising VAT invoices for earnings

When you receive your monthly payout notification you will be required to raise a tax invoice for the amount stated in the notification. Please be aware that the invoice you provide must adhere to the following requirements and must be submitted correctly and on time to avoid delays with payment:

1. The tax invoice should be correctly formatted as per SARS requirements.
2. The invoice should reflect the correct billing information we supply.
3. The invoice total should match the payout total exactly (to the cent), see example below.
4. The invoice date should match the date you have received the payout notification.
5. To avoid delays, your tax invoice should be received within 5 days after the payout notification has been sent to you.
6. We reserve the right to reject incorrect and invalid invoices.
7. A payout cannot be settled until a valid tax invoice has been submitted correctly.
8. You are liable to make your VAT payments directly to SARS as required

The invoice total inclusive of VAT should match the payout amount. For example, should your payout notification state that your payout amount will be R81,500.00. Your tax invoice should be calculated as follows:

• Earnings excluding VAT: R70,869.56
• VAT @15%: R10,630.44
• Total earnings including VAT: R81,500.00

 

Settlement and payment

Once the invoice has been received in order, the settlement process will begin and your payment will be processed as per usual.

Compliance certificates

In addition to the monthly tax invoices, you may also be required to submit your tax compliance and BEE certificate once a year. Please note that: we may be required to terminate your account if you cannot provide proof of compliance.