What is VAT (in plain English)?

• VAT = Value Added Tax.
• It’s a consumption tax charged on goods and services.
• You collect VAT on behalf of SARS when you sell, and you claim back VAT you paid on business expenses.

📌 You are simply acting as SARS’s collection agent. VAT doesn’t belong to you—it must be managed carefully.

When Must Your Business Register for VAT?

• VAT registration is compulsory once your business’s turnover exceeds R1 million in any rolling 12-month period.
• You may also voluntarily register if your turnover exceeds R50,000 in 12 months.

📌 Tip: Many SMEs delay registration and land in trouble when SARS audits past turnover. Bletchleys monitors this threshold for you.

How Often Do You Submit VAT?

• • SARS requires you to submit VAT201 returns:
    • Every 2 months (standard cycle)
    • Monthly (if you’re a larger business or requested it)
    • Annually (very rare for SMEs)
  • Most SME clients submit every 2 months.

📌 Tip: Missing VAT submissions triggers automatic SARS penalties.

How Bletchleys Keeps SME Directors VAT-Compliant

• At Bletchleys, we simplify VAT for SME directors by:✔ Monitoring when you hit VAT registration thresholds
  ✔ Registering your business for VAT correctly
  ✔ Managing monthly or bi-monthly VAT calculations
  ✔ Submitting VAT201 returns on time
  ✔ Reconciling VAT monthly for accuracy
  ✔ Handling SARS correspondence and audits
  ✔ Keeping you fully compliant — and penalty-free

📌 You stay focused on your business while we handle SARS.

What You Must Charge VAT On

• All taxable sales and services you provide in South Africa.
• Some exemptions apply (zero-rated items, export sales, certain financial services).

Output VAT = VAT you collect from customers.

📌 Tip: Always state your VAT number and VAT amount clearly on invoices.

What You Can Claim VAT On

• Business expenses where suppliers charged VAT.
• Only claim VAT where:
  • The supplier is VAT-registered.
  • You hold valid tax invoices.
  • The expense is for business use.

Input VAT = VAT you claim back.

📌 Tip: Incorrect claims are a major SARS audit trigger. Bletchleys reviews all claims carefully before submission.

Common VAT Mistakes That Cost Directors Money

🚩 Submitting late
🚩 Claiming VAT on expenses without proper invoices
🚩 Claiming VAT on personal or non-business expenses
🚩 Not reconciling VAT accounts monthly
🚩 Missing corrections on previous returns
🚩 Forgetting SARS payments linked to returns

📌 Tip: VAT compliance is about detail and consistency. Bletchleys handles this monthly to avoid surprises.

What SARS Looks For in a VAT Audit

• Consistency between VAT, income tax, and PAYE submissions.
• Valid invoices supporting all claims.
• Proper reconciliations with bank statements.
• Clean audit trails inside your accounting system (e.g. Xero). 

📌 Tip: If your records are up to date, VAT audits become routine—not stressful.