Problems experienced with VAT registration alleviated.

ALEC HOGG: Martie Foster is an associate director at Webber Wentzel. She is also a member of  SAICE's national tax committee. Martie, good to have you on the programme. SARS has been listening to complaints from small business people worried about perhaps closing because of their VAT registration not being able to be done in order. There are three major issues that came through. The biggest one, I guess, is that if you were to register for VAT, you had to show a copy of municipal accounts in the company's name, and that was not always possible.

MARTIE FOSTER: Exactly. That was a major issue, because those who know would know that a lot of the small businesses often are actually conducted from, for instance, the home of the person who started off the business, and in those cases the municipal account would not be in the name of the company. What they've allowed now is for Telkom accounts to be accepted, provided the physical address of the applicant, in other words the business, is clearly shown on the account. If it only shows the postal address, then unfortunately it is still not accepted.

ALEC HOGG: At least it's a step in the right direction. But the other thing was that if you were a director of a company and you were of another company as well where the returns were outstanding, then you had a problem - you couldn't register for VAT, which seemed a little harsh.

MARTIE FOSTER: It was indeed. And even if it was just a personal outstanding return of those directors or shareholders or members of the CC. What they've done now is they've said OK, if any of your personal returns are outstanding, or you have amounts in your personal capacity as a director or shareholder or member of a CC outstanding, then the application for the business itself will not be declined or rejected.

ALEC HOGG: Martie, who has to register for VAT?

MARTIE FOSTER: Any person conducting an enterprise which generates taxable supplies in the excess of R1m, they would have to register for VAT. And that R1m covers a 12-month period, so it's not linked to a tax year or a calendar year. So it's any 12-month period.

ALEC HOGG: Martie Foster is a member of SAICE's national tax committee.

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