South african revenue service:

Question

Peter owns three enterprises:
Enterprise 1 Turnover 560 000 for 12 months
Enterprise 2 Turnover 220 000 for 12 months
Enterprise 3 Turnover 340 000 for 12 months
Determine whether Peter is obliged to register the company for VAT

Answer 1

To determine whether Peter is obliged to register his companies for VAT in South Africa, we need to consider the turnover of each enterprise.

The threshold for mandatory VAT registration in South Africa is a turnover of R1 million in any consecutive 12-month period.

Based on the turnover provided:
Enterprise 1: R560,000
Enterprise 2: R220,000
Enterprise 3: R340,000

When we add up the turnover of all three enterprises, we get:
R560,000 + R220,000 + R340,000 = R1,120,000

Since the total turnover of all three enterprises is over the R1 million threshold, Peter is obliged to register his companies for VAT in South Africa.