Turnover Tax: the who, what and how
Presenters : Carmen Westermeyer
Overview
When a client with a micro business asks you about turnover tax, does it send chills down your spine? Many taxpayers and practitioners are put off by this simplified taxation method due to a lack of understanding of the intricate rules outlined by SARS for eligibility as a turnover taxpayer.
SARS provides an online test on their website to establish whether your client is eligible to register for this tax system. You can try the test out here: Do I qualify for Turnover Tax?
However, as easy as taking the test may seem, tax professionals need to understand the rules, terminology, and correct procedures to advise clients appropriately.
Video Content
The aim of this session is to discuss:
- Who qualifies for turnover tax?
- What are the accurate definitions of personal service provider, labour broker, and small business funding entity?
- How is turnover tax calculated?
- How does turnover tax interface/align with other tax types?
- What are some of the practical considerations for taxpayers registered for turnover tax?
Competencies developed in this video
At the end of this session, you will be able to successfully:
- Identify whether a taxpayer qualifies for turnover tax.
- Easily explain terms and definitions to clients:
- Calculate the taxes payable.
- Understand when and how the returns are submitted to SARS.
- Comprehend the assessments issued based on 3% of a company’s taxable turnover.