Q: A client of mine
has a taxi business; I would like to know if he can register for VAT. The
activities he conducts are car rental/hire and a taxi service.
A: With regards to
the query the VAT Act does not exclude taxis operators from registering for VAT
they would still have to comply with the minimum registration requirements. In
this respect a minimum preceding 12 month taxable supplies of R50 000
(s23(3)(c) VAT Act ).
However, where the
transport of people and goods are not cross border per section 11(2)(a) VAT
Act, it will be an exempt supply in terms of section 12(1)(g) VAT Act which
will result in the taxi operator most probably not achieving the minimum
taxable supplies threshold for registration.
Disclaimer: Nothing in this
query and answer should be construed as constituting tax advice or a tax
opinion. An expert should be consulted for advice based on the facts and
circumstances of each transaction/case. Even though great care has been taken
to ensure the accuracy of the answer, SAIT do not accept any responsibility for
consequences of decisions taken based on this query and answer. It remains your
own responsibility to consult the relevant primary resources when taking a
Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.
MINIMUM REQUIREMENTS TO REGISTER
The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.