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 and delivery of specialised trucks – aerial platform maintenance trucks. 2021-01-15 11:00 BV807/2020
Construction of sanitation facilities at Yawa PS and Xabasa PJS in Eastern Cape 2020-12-18 12:00 TMT- DBE- 2021- SAFE- ECCL10
Provision of legal services: Comprehensive legal advisory services, investigator and initiator at disciplinary hearings against councillors in the Swellendam Municipality 2020-12-18 12:00 SMT46/20/21
Provision of legal services: Support in relation to various legal matters and related internal control matters in the Swellendam Municipality 2020-12-18 12:00 SMT45/20/21
Provision of legal services: Legal advisory services MFMA, SCM and related services specialist 2020-12-18 12:00 SMT44/20/21
Provision of legal services: Comprehensive legal advisory services, litigation and conveyancing services 2020-12-18 12:00 SMT43/20/21
Request for Proposals: Design, development and hosting of official municipal website for the period ending 30 June 2023 2020-12-18 12:00 SMT34/20/21
Provision for the appointment of a server technician for a period of 6 months 2020-12-07 13:00 EWSETA/RFQ/77/2020
Provision of a senior programmer for a period of 5 months 2020-12-07 13:00 EWSETA/RFQ/76/2020
Provision of health and safety support services 2020-12-08 13:00 EWSETA/RFQ/75/2020
Supply and Delivery of Street Sweeping Machine 2020-12-21 11:00 BM30/20/21
Inviting bids to train selected Grade 1-3 Teachers with necessary resources, subject advisors and Provincial Coordinators on the use of Information Communication Technology (ICT) for teaching and learning focusing on digital curriculum, technology integration in the classroom practice and change management 2020-12-14 11:00 E18/2020/2021
Supply, implementation and maintenance of an e-recruitment system for period of 3 years 2020-12-15 12:00 RDM2020-029A
Construction of sanitation facilities at Mcobololo SSS and Silo JSS in Eastern Cape 2020-12-18 12:00 TMT- DBE- 2021- SAFE- ECCL13
Document Management System Phase 2 (workflow) 2021-01-08 11:00 156
Implementation of Solar Water Heaters in Selected Brownfield Facilities in Gauteng 2021-01-04 11:00 154a
Implementation of Solar Water Heaters at Freda Hartley Shelter for Women in Yeoville, Dreamland Farm in De Deur and Motsosi Primary School in Zone 7 Sebokeng 2020-12-11 11:00 3720
Supply and Installation of Thermal Wall Insulation, Drywall Insulation Boards, Folding Doors and the Cool Surfaces Paint at the Freda Hartley Shelter for Women Crèche Facility in Yeoville 2020-12-10 11:00 3620
Appointment of a panel of service providers to supply cleaning material, linen and related items to RTMC for a period three (3) years 2020-12-22 11:00 RTMC BID 16/ 2020/ 21
Appointment of a panel of service providers for Electrical Services Nationally to the RTMC 2020-12-23 11:00 RTMC BID 18/ 2020/ 21

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