Page 38 - Profmark BSA Guide 2025

■ Zero-rated supplies – supplies of certain goods or services subject to VAT at zero
percent. Vendors making zero-rated supplies are entitled to input VAT credits
Key Features
■ Enterprises with a turnover of less than R1 000 000 in any period of 12 months
are not obliged to register for VAT
■ Enterprises with a turnover of less than R50 000 in any period of 12 months are
not permitted to register for VAT
■ VAT returns are generally submitted on a two monthly basis unless turnover in any
period of 12 months exceeds R30 million, in which case returns are submitted
monthly
■ Vendors may reclaim the VAT element on expenditure incurred for the purpose
of making taxable VAT supplies except on, entertainment, excluding qualifying
subsistence, passenger vehicles (including hiring) and club subscriptions
■ Input tax credits may not be claimed on expenditure relating to exemptsupplies
■ Input tax credits may only be claimed upon receipt of a valid tax invoice
■ In order to be a valid tax invoice the name, address and VAT registration number
of the recipient and supplier must appear on tax invoices where the VAT inclusive
total exceeds R5 000
■ A deposit is not subject to output VAT until the supplier applies the deposit as
consideration for payment
Capital Gains Tax (CGT)
Persons subject to CGT
CGT is payable on capital gains that arise by the following persons:
■ Residents are subject to CGT on all assets including overseas assets.
■ Non-residents are subject to CGT on immovable property or any right or interest
in a property situated in SA and any asset of a permanent establishment through
which a trade is carried on in SA.
Note: Any right or interest in a property includes a direct or indirect interest of at least
20% held alone or together with any connected person in the equity share capital of a
company, where at least 80% of the value of the net assets of the company is, at the
time of the disposal, attributable to immovable property in SA.

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