Personal Income Tax

Back to Basics for Small Businesses

Tax Invoices 

What information needs to be on a Tax Invoice

  1. The word “Tax Invoice” must be clearly indicated.
  2. The supplier name, Address and VAT no
  3. Tax Invoice Number
  4. Date of Invoice
  5. Recipient name, address and VAT number of recipient (if it is a registered vendor)
  6. Description of goods
  7. Price per unit and quantity
  8. Total Sale value (Indicate the currency)
  9. VAT Charged (indicate the VAT percentage)
  10. Total value including VAT

For tax invoices below R5000

  1. The recipient details need not appear on the invoice
  2. There are no requirements to show the units or volume
  3. The description need not be full.

Value Added Tax (VAT)

Who should register for VAT?

Any person that carries on a business may register for VAT.

It is mandatory for a person to register for VAT if the taxable supplies made or to be made is, in excess of R1 million in any consecutive twelve-month period.

A person may also choose to register voluntarily if the taxable supplies made, in the past period of twelve months, exceeded R50 000.

VAT increased from 14% to 15% from 1 April 2018.

How to register for VAT?

The VAT 101 application for registration must be submitted in person at the SARS branch nearest to the place where your business is situated or carried on.

A registered tax practitioner can register your business for VAT on your behalf.

Registering For Employees’ Tax  [Pay-As-You-Earn (PAYE)]

Who should register as an Employer?

An employer must register with the SARS within 21 business days after becoming an employer, unless none of the employees are liable for normal tax.

What is Employees Tax?

Employees’ Tax refers to the tax required to be deducted by an employer from an employee’s remuneration paid or payable. The process of deducting from remuneration as it is earned by an employee is commonly referred to as PAYE.

Monthly submissions to SARS by Employer

The amounts deducted or withheld must be paid by the employer to SARS on a monthly basis, by completing the Monthly Employer Declaration (EMP201). The EMP201 is a payment declaration in which the employer declares the total payment.

Employer Annual Reconciliations

Employers are required to submit their Employer Annual Reconciliations by 31 May to SARS, confirming or correcting payroll tax amounts which were declared in respect of the tax period.

Who should register for Unemployment Insurance Fund (UIF)

An employer who is registered or required to register with SARS for PAYE and/or Skills Development Levy (SDL) purposes, is also required to register with SARS for the payment of Unemployment Insurance Fund (UIF) contributions to SARS.

Asset Management Policies

Asset Management Policies and Fixed Asset Registers

The objectives of an asset management policy are to ensure that assets are managed and accounted for by:

The goal of asset management is to achieve the required level of service in the most cost-effective manner, which is achieved through management of the asset’s life cycle.

Asset Management Policy’s purpose is to prescribe procedures for the financial and logistical management of assets, and to:

  • provide a formal set of financial procedures that can be implemented to ensure that asset policies are achieved;
  • ensure that effective controls are communicated to management and staff through clear and comprehensive written documentation;
  • ensure that the safeguards and controls the assets;
  • optimize asset usage; and
  • emphasize a culture of accountability over assets.

Asset Registers

The asset register shall be a complete and accurate database of the assets

and that is regularly updated and validated.

All assets owned and controlled by an entity must be recorded in an asset register.

The asset register should contain following information:

  • a brief but meaningful description of each asset
  • the date on which the asset was acquired or brought into use
  • the location of the asset
  • identification number or barcode
  • the original cost or the fair value if no costs are available
  • accumulated depreciation to date
  • the depreciation charge for the current financial year
  • the carrying value of the asset
  • the method and rate of depreciation
  • impairment losses incurred during the financial year
  • the date on which the asset is disposed of
  • the disposal details
  • the date on which the asset is retired from use, if not disposed of.

Assets remain in the asset register for as long as they are in existence or until being written off.

Wessels & Associates is an Audit and accounting practice based in Pretoria, Montana area.

We specialize in the following:

  • Fixed Asset Registers
  • Quality control and testing of Fixed Asset Registers
  • Asset Management Policies
  • Assessing useful lives and impairment of assets
  • Technical support on GRAP (General Recognized Accounting Practice)
  • Training and workshops on GRAP related to assets
  • Streamline your internal processes to be more efficient
  • Help build your own capacity within your business.
  • Audit Support
  • Accounting
  • Consulting
Accounting Pretoria

Wessels & Associates, Chartered Accountants (SA)

Wessels & Associates, Chartered Accountants (SA), has the strategic and analytical background to help you formulate a winning strategy and avoid making costly mistakes in any sphere of your business ensuring that every move you make, is a winning one!

When you want to take your business to the next level, you need to partner with a responsible professional who has a holistic business approach and knowledge that enables them to approach things differently.

Wessels & Associates provides financial support services in Accounting, Tax, Auditing and Consulting to individuals and small to medium size business.

We can give your business the decision-making expertise it needs to create real, measurable results to maximise your chance of success.

Wessels & Associates holds the following professional memberships:

SAICA:             South African Institute of Chartered Accountant

IRBA:              Independent Regulatory Board of Auditors

SARS:              SARS Tax Practitioner

SAGE:              Forum member