Does Vuyo qualifies to pay VAT or not with reference to the provisions of SARS?

In South Africa, businesses are required to register for Value Added Tax (VAT) if their annual turnover exceeds R1 million. If Vuyo's annual turnover exceeds this threshold, then he would be required to register for VAT and pay VAT on his taxable supplies. It is important for Vuyo to consult with the South African Revenue Service (SARS) or a tax professional to determine if he qualifies to pay VAT based on his specific circumstances.

Yes, Vuyo qualifies to pay VAT.

According to the South African Revenue Service (SARS), a person is required to register for VAT if their taxable supplies exceed ZAR 1 million in a 12-month period.

Vuyo's situation:

- Vuyo operates a business that provides catering services.
- His taxable supplies for the past 12 months were ZAR 1.2 million.

Since Vuyo's taxable supplies exceeded ZAR 1 million, he is required to register for VAT as per the provisions of SARS.

Provisions of SARS:

- VAT Act, No. 89 of 1991, Section 23(1): Every person who carries on an enterprise in the Republic and whose taxable supplies in the course of any 12-month period have exceeded or are likely to exceed the amount of ZAR 1 million must be registered as a vendor with SARS.

Conclusion:

Based on the information provided, Vuyo qualifies to pay VAT as his taxable supplies exceeded ZAR 1 million in a 12-month period. He is therefore required to register for VAT with SARS.