1. What is SARS?
SARS, short for the South African Revenue Service, is the tax authority in South Africa. Its main role is to administer and collect taxes, including income tax, value-added tax (VAT), payroll taxes, and customs duties. SARS also plays a critical role in enforcing compliance and combating tax evasion.
2. Types of Taxes Small Businesses Must Consider
As a small business owner in South Africa, you’ll need to be aware of the following key taxes:
b. Value-Added Tax (VAT): If your business generates an annual turnover above the VAT threshold (which may change over time), you must register for VAT with SARS. VAT is a consumption tax levied on the value added to goods and services at each stage of production or distribution.
c. Payroll Taxes: If you ha