VAT is a common acronym that you will see when doing business in South Africa. It stands for Value-Added Tax, and it’s a tax that is charged on most goods and services. In this blog post, we will discuss what VAT is, what is deductible, and workman’s compensation.
What is VAT in South Africa?
VAT is a tax that is charged on most goods and services in South Africa. The standard VAT rate is 15%. This means that if you buy a product or service for R100, you will pay R115 including VAT.
Some items are exempt from VAT, which means that they are not subject to tax. These items include basic foodstuffs, medical products, and books.
What is Deductible VAT?
Deductible VAT is a tax that can be claimed back by businesses. This means that if you are a business and you have paid VAT on your purchases, you can claim this back from SARS. The only catch is that you must be registered for VAT in order to claim it back.
How Does Workman's Compensation Work?
Workman’s compensation is a system of insurance that provides benefits to employees who are injured or become ill as a result of their job. In South Africa, the Department of Labour requires all employers to have workman’s compensation insurance.
This insurance covers the cost of medical treatment, income replacement, and death benefits. It also covers the cost of legal fees if the employee decides to sue the employer.
Workman’s compensation is a no-fault system, which means that the employee does not have to prove that the employer was at fault in order for the benefits to be paid.
How can we help?
At Leading Edge, we can help you with a multitude of insights and advice when it comes to Tax and VAT compliance. We free up business owners’ time and equip them to focus on moving their business forward. We use the latest cloud-based technology and advise on the best possible integration to meet your specific needs.
We offer an all-in-one subscription service that allows for flexibility and control. We simplify key financial information and provide practical advice and guidance. We’re experienced in small business tax services and efficient tax planning. Our passion is helping entrepreneurs to understand tax and become tax compliant.
If you would like to learn more about how we can help you, please contact us today!
