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How does VAT Work?
SARS will issue the business with a registration number, which is called a VAT invoice number. This number requires the person or business to charge 14% VAT on goods or services the business sells.
Example:
Nomawethu types letters for other people. She is registered as a vendor. She charges R50 to type one page. She must charge 14% VAT on top of that. In other words, 14% of R50 is R7. So she charges R50 + R7 = R57 altogether.
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