Taxation & Accounting / VAT Description
South African tax law comprises of a number of direct and indirect taxes. Direct taxation mainly comprises of income and capital taxes, which includes tax on the sale profit element of property with some exemption in respect of your primary residence. Indirect is VAT which is levied at 14% on most products purchased.Displayed prices should include VAT. Furthermore, Excise & Custom duties are imposed on all goods entering South Africa.
VAT refunds may be claimed back by foreign tourists / non residents on items being taken out of the country. You are required to have the original VAT Invoice, Passport, Flight Ticket, plus the items available for inspection. They must be presented at a VAT or Customs and Excise office, In the V & A Waterfront,which is situated on the second floor of the Clock Tower Centre. In order to complete the paper work, you would need to produce all your invoices, passport as well as confirmation of flight details. The operating hours are: Monday to Saturday 09h00am – 17h30pm; Sundays 10h00am – 17h30pm.
or if you have time, at Cape Town Airport, prior to departure and you are required to fill out a VAT refund control sheet (VAT255)
Inbound Duty Free Allowances per person -:
50ml Perfume,250ml Eau de Toilette, 2 Litres of Wine, 1 Litre Spirit, 200 Cigarettes, 50 Cigars, 250 g of Tobacco. New or used goods not exceeding R3000 in value.
Outbound Duty Free Allowances are the same and also detailed in the Useful Information Category under Staying & Playing.
The South African Revenue Service is know as SARS.
For further information please visit - www.sars.co.za
South Africa does hold a fully ratified tax treaty with the UK which means you should only pay tax on income / capital gain once, in whichever country
It is almost impossible to detail out the personal income and capital taxation levies as each persons liability or not, will certainly differ Whether you are a Non Resident or a Permanent Resident and you have any form of income, investment and resulting income in South Africa you well may have a tax liability at some point, particularly if you spend more that 91 days in South Africa in any tax year. ( Tax Year Starts 1st March ) We cannot stress enough the need to seek tax advice if you intend to reside in South Africa
In fact now you cannot sell your property unless you have a SARS tax registration number.
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SARS has over a period of several years improved vastly their service delivery, particularly from the aspect of electronic submissions and payments.
This does not do away with keeping accounting records and vouchers altogether, but certainly smoothes the logistics of dealing with SARS.
A choice of entities with which to own your property or investments, or through which to trade, allows for alternatives for individuals to account for their investments or trade.
If you require personal or business assistance and advice please contact -:
KEVIN CHAPMAN
CHAPMAN & ASSOCIATES
WEBSITE - www.livegroup.co.za
Cell - 0027 (0) 84 713 5884
Fax - 0027 (0) 88 021 674 5884
EMail - chapmanandassociates@iafrica.com
Postal Address -
PO Box 31335
Tokai, 7966
Cape Town
5, Livingstone Road,
Claremont, 7708
Cape Town,
South Africa.
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