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.
Request for Proposals: Production of Functional Requirements and Development of a Minimum Viable Product for the PSET CLOUD. 2021-05-16 17:00 No reference number
RFQ for Quotations (RFQ) to appoint a service provider/supplier to review the Corporate Governance Framework of SACNASP and to develop a Delegation Framework and to align SACNASP’s Corporate Governance with Enterprise Risk Management. 2021-04-21 11:00 No reference number
The provision of internal audit services for the KZN Growth Fund Trust for the period of thirty-six (36) months. 2021-05-04 12:00 KGFT - RFP 2021/02
Consultancy services to establish the Africa CDC Regional Integrated Surveillance and Laboratory Network (RISLNET) in Southern Africa 2021-05-04 15:00 ET-AUC-225259-CS-QCBS
Appointment of a service provider for provision of short-term insurance for three (3) years for council for medical schemes 2021-05-10 11:00 CMS022021/22
Appointment of a service provider for provision of human resource service (job evaluation and salary benchmarking) for three (3) months 2021-05-10 11:00 CMS01/2021/22
Appointment of a travel management company (TMC) for three (3) years for the Council for Medical Schemes (CMS) 2021-05-10 11:00 CMS03/2021/22
Supply, installation and management of a prepayment electricity vending system 2021-05-14 12:00 SCM/20218/204/FIN
Supply and Delivery of Personal Protective Clothing for a period of 3 years. 2021-05-14 14:00 SCM 13/2021
ICT Support Services and Licensing for a period of 3 years. 2021-05-14 12:00 SCM9/2020/21
Appointment of electrical contractor for supply, delivery and installation of high mast lighting for a three -year period as and when required in the eastern region 2021-05-20 11:00 BID NO: 292/2021
Appointment of electrical contractors for supply, delivery and installation of high mast lighting for a three -year period as and when required in the southern region 2021-05-20 11:00 Bid No: 293/2021
Three year contract for road resealing & repairs for the City of Mbombela 2021-05-21 11:00 BID NO: 243/2020
Enlistment of training providers in the panel of accredited training service providers for the implementation of training projects funded by the department through the environmental protection and infrastructure programme (epip) on “as and when required basis” over a period of three (3) years. 2021-04-30 11:00 DFFE -T001 (21/22)
Supply and delivery of cast iron saddles 2021-04-19 12:00 RFQ319/2020/21
Supply and fit broken flywheel housing and repair engine block on Nissan UD70 Truck. 2021-04-19 12:00 RFQ317/20/2021
Supply and delivery of tared Pinus Radiata wooden poles 2021-04-19 12:00 RFQ321/2020/21
Supply and fit Tata LPT 1518TC truck reconditioned engine with a warranty 2021-04-19 12:00 RFQ322/20/2021
Pool of consultants for financial services provider to be appointed in the Greater Giyani Municipality for the period of three (3) years 2021-04-28 12:00 G/G/M/6105/001/2021
Supply and delivery of structural fire fighting helmets and spare structural fire fighting helmet face shields (visor) and fire fighting goggles 2021-04-19 12:00 RFQ323/2020/21

Pages

Who is the bidder or his or her representative?

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

In Organ of State tenders, the Standard Bidding Document 4 – Declaration of Inters – ask in paragraph 2.1 the following: “Full name of bidder or his or her representative... Read More

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