Issue Date: 
Thursday, October 31, 2019

Tax Clearance Certificates and VAT in the tender process

By Werner van Rooyen, Director of HowToTender (Pty) Ltd which specializes in tender consulting and tender training.

The Preferential Procurement Policy Framework Act dictates that Organs of State enforce certain minimum requirements when awarding tenders, to verify that an enterprise is legally operating and is tax compliantOne of these are a tax clearance certificate.  Your business must be registered with SARS for Income Tax purposes if you want to tender.

To be registered for VAT, however, is not compulsory.  You will find that once you start selling your product or service, your customers are going to ask you for a Tax Invoice.  This is where the fun starts.  If you are registered for Value Added Tax or VAT in short, there would be no problem to supply your customers with a tax invoice, but if you are not registered for VAT this is where it becomes tricky. 

The South African public and business folk are so brain washed on a Tax Invoice that hardly anyone knows what a Tax Invoice is.  All they know is that their Auditors demand a Tax Invoice and if they cannot supply a Tax Invoice to the Auditors they are in trouble.  A Tax Invoice can only be issued by a business or vendor that is registered for VAT. 

There are several instances where a business or vendor can register for VAT, but the number one requirement is if the turnover of the business exceeds R1 million per year.

To learn more about this and many other tender conditions attend our “Become a Tender Expert” 2-Day workshops presented in Johannesburg, Pretoria, Durban, Port Elizabeth, and Cape Town.  Book and pay online at https://howtotender.co.za/tender-expert-form/

Contact us at wernervr@howtotender.co.za should you require more information.

You can also purchase a Tender Manual (Handbook) on our website https://howtotender.co.za/ which is a step by step guide how to respond to a South African Tender.  It includes examples of completed SBD forms.

Title Closing Date Tender No.
Supply, deliver and offload new tractors and implements at Ethekwini and Ilembe District Offices 2020-07-30 11:00 DARD10/ 20A
Appointment of service provider to oversee the implementation of four (04) Agri-hubs in KwaZulu Natal Province. 2020-07-30 11:00 DARD09/ 20A
For the supply and delivery of frozen vegetable products for the Food Services Department at Tygerberg Hospital for a twelve (12) month period, effective 1 September 2020 until 31 August 2021 with the option to extend on a month to month basis not exceeding four (4) months 2020-08-07 11:00 TBH 306/ 2020
For the supply and delivery of frozen fish products for the Food Services Department at Tygerberg Hospital for a twelve (12) month period with the option to extend on a month to month basis not exceeding four (4) months 2020-08-07 11:00 TBH 305/ 2020
For the supply and delivery of fresh vegetable products for the Food Services Department at Tygerberg Hospital for a twelve (12) month period, effective 1 September 2020 until 31 August 2021 with the option to extend on a month to month basis not exceeding four (4) months 2020-08-07 11:00 TBH 307/ 2020
For the supply and delivery of fresh meat products for the Food Services Department at Tygerberg Hospital for a twelve (12) month period, effective 1 September 2020 until 31 August 2021 with the option to extend on a month to month basis not exceeding four (4) months 2020-08-07 11:00 TBH 302/ 2020
Supply, Install and Configure Mainframe Print Management Software, including Maintenance and Support to SITA for a period of three (3) years 2020-07-31 11:00 RFB 2170- 2020
Supply and Delivery of Laptops 2020-07-31 11:00 RFT- 2- 2020/ 21
Appointment of a service provider or independent ICT consultants for the provision of outsourced ICT management services for a period of 3 years 2020-08-07 11:00 EWSETA/RFP/14/2020
The appointment of a reputable stationery supplier to supply and deliver stationery for a period of three (03) years (36 months) to all SITA office country wide 2020-07-31 11:00 RFB 2149/ 2020
Provision of Security Services at Department of Public Works, Southern Regional Office,10-18 Prince Alfred Street extension, Pietermaritzburg, for the period of 24 months 2020-08-12 11:00 ZNT 2956W
Supply, delivery, end-user training, demonstration, installation & commissioning of a mobile x-ray c-arm flat panel used for complex orthopaedic trauma surgery: Dr Pixley Ka Seme Memorial Hospital: ONCE-OFF 2020-08-03 11:00 ZNB 9803/ 2020- H
Appointment of a service provider for the supply, delivery and offloading of pharmaceuticals. 2020-07-15 10:00 Q01-2020 21
Request for bid for the appointment of a service provider for implementation, support and maintenance of the ICT network switching infrastructure 2020-07-29 11:00 SADPMR13/2020
Appointment of a service provider for the supply, delivery and offloading of intravenous fluids. 2020-07-15 10:00 Q02-2020 21
Appointment of a service provider for the supply and deliver of masks 2020-07-20 09:00 RLM/DRT/0097/2019/20
Market research analysis for PRASA house 2020-07-14 14:00 RFQ01/0607/2020
Panel of legal firms for the period of 36 months to be appointed as and when required 2020-08-11 12:00 G/G/M/6108/001/2021
Provision of Comprehensive Events Management Services For Transnet SOC Ltd (REG. NO. 1990/000900) Operating as Transnet Port Terminals (hereinafter referred to as “TPT”) For Head Office and all TPT Terminals For a Period of Two Years 2020-08-25 10:00 iCLM HQ 421/TPT
Supply and delivery of clinic medication (purchasing agreement for 36 months-on an as and when basis 2020-07-17 10:00 OPS 19/20-039-04

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