Can I register my business for tax after 2 years running?
By Marc Sevitz · Updated
The business is running for two years now and we have not registered for tax or for VAT.
What is your advice?
If the business is not making a profit then there is no tax to be paid as corporate tax is only paid on profits and not revenue generated. You only need to register for VAT if your turnover is more than R1m a year. Then you will charge an extra 14% on your sales, but you will also be able to claim 14% of your expenses. Being a VAT vendor only means you act as an agent for SARS collecting VAT and does not affect your profitability.