The provision to negotiate an earlier date of registration is contained in the VAT Act 1994.Schedule 1, paragraph 9(a), entitles a person who is not, and is not required to be VAT registered to register for VAT if he can satisfy HMRC that he is in business and is making taxable supplies.The business must complete a VAT 101 - Application for Registration form and submit it to the local SARS branch within 21 days from date of exceeding R1 million.

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Clearly where an earlier date is requested then output tax should be accounted for on any supplies made.

The payments received would be treated as VAT inclusive and the VAT fraction of 1/6 should be applied to extract the VAT out of the amount.

The First Tier Tribunal (FTT) found that the misunderstanding of the company over whether the builders’ costs were for goods or services was genuine.

HMRC should have considered this but did not, and so their decision not to allow the backdating was unreasonable.

It is your responsibility to pay the missed payment.

You can pay the missed payment through ROS or by debit or credit card.

A registered tax practitioner may appear in person on behalf of the applicant.

SARS will not accept any faxed or photocopied applications for registration.

However, if payment is not received, bad debt relief can be claimed after 6 months.