Entrepreneurs sometimes think of "tax" as one single registration. It isn't — a business may have obligations involving income tax, VAT, PAYE, UIF, SDL and other requirements depending on its structure. Being below the VAT threshold doesn't automatically mean a business has no other tax system to consider, and the right question is which system applies, not just whether VAT registration is required.
Source: SARS — Small Business Taxpayers
Frequently Asked Questions
What is Turnover Tax?
It is a simplified tax system for qualifying micro businesses.
Is Turnover Tax the same as VAT?
No — they are separate tax systems with different purposes and rules.
Can a business below R2.3 million choose Turnover Tax?
A qualifying business may be able to use the Turnover Tax system, but eligibility requirements must be met.