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.
Provision of Information Technology System for the Design,Supply,Implementation and Commissioning of an Integrated Electronic Systems for Lepelle Northern Water By a Consortium/Individual/Joint Venture Companies 2020-02-18 11:00 LNW 18/ 19/ 20
Department of Economic Development Tourism and Environmental Affairs: Ugu: Hire of Office Accommodation: A lettable area sufficient to accommodate 816m2 of office space plus to a maximum of 25% of nonassignable space plus 25 undercover bays of which 1 is to be a disabled bay 2020-02-19 11:00 ZNT 2933 W
Provision of Office Accommodation: Ixopo Satellite Office for a leased period of 5 years. (Leases ranging from seven to ten years will also be considered). The office space required should be minimum of 88.28m² with three(3) parking bays 2020-02-20 11:00 27/ 2019
Department of Community Safety and Liaison: Ugu: Hire of Office Accommodation: A lettable area sufficient to accommodate 242m2 of office space plus to a maximum of 25% of non-assignable space plus 3 undercover bays of which 1 is to be a disabled bay., 4 lock up bays required 2020-02-19 11:00 ZNT 2936 W
Department of Human Settlement: Ugu: Hire of Office Accommodation: A lettable area sufficient to accommodate 374m2 of office space plus to a maximum of 25% of non-assignable space plus 6 lockup garages,6 secure undercover bays of which 1 is to be disabled bay 2020-02-19 11:00 ZNT 2934 W
Department of Social Development: Howick: Hire of Office Accommodation: A lettable area sufficient to accommodate 500m2 of office space plus to a maximum of 25% of non-assignable space plus 6 secure undercover bays of which 2 is to be a disabled bay, 8 open parking bays is required. 2020-02-19 11:00 ZNT 2922 W
Provision of Office Accommodation: Umzinto Satellite Office for a leased period of 5 years. (Leases ranging from seven to ten years will also be considered). The office space required should be minimum of 93m² and two (2) parking bays 2020-02-20 11:00 28/ 2019
Provision of Office Accommodation: Queenstown Local Office for a leased period of 5 years. (Leases ranging from seven to ten years will also be considered). The office space required should be minimum of 462m² with thirteen(13) parking bays 2020-02-20 11:00 26/ 2019
Appointment of a Panel of Forensic Investigation Service Providers 2020-02-10 11:00 GPAA 01/ 2020
Team effectiveness sessions 2020-02-11 11:00 FSCA2019/ 20- T017
Chairpersons for disciplinary hearings and initiators 2020-02-11 11:00 FSCA2019/ 20- T018
Office of the Premier: Pietermaritzburg: Hire of Office Accommodation: A lettable area sufficient to accommodate 3785m2 of office space plus to a maximum of 25% of non-assignable space plus 100 secure undercover bays of which 2 is to be a disabled bay, 200 open parking bays is required. 2020-02-19 11:00 ZNT 2924 W
Supply, delivery and installation of five storage containers that will be used for storing condoms at five Eastern Cape Department of Health sub districts (Ngquza Hill, KSD, Mhlontlo, Sakhisizwe and Mbhashe sub district) 2020-02-17 11:00 SCMU3- 19/ 20- 0446- HO
Provision of offsite storage services 2020-02-11 11:00 FSCA2019/ 20- P003
Supply & delivery of perishables to Dora Nginza Regional Hospital for a period of 36 months 2020-02-14 11:00 SCMU3- 19/ 20- 0417- DNG
Provision of Cloud Based ERP system 2020-02-07 11:00 CON3063/ 20
Rendering of Cremation and Burial service of Pauper and Destitute decedents for Western Cape Government: Health Facilities for three (3) year period 2020-02-14 11:00 WCGHSC 0202/ 2019
Provision of Cloud Based Infrastructure and Connectivity 2020-02-07 11:00 CON3062/ 20
Fasset is seeking to appoint a suitably qualified and experienced training provider to work with Fasset to present a half day seminar on Budget and Tax Update 2020 to an expected number of 6500 to 7000 delegates, at 36 venues (including additional venues excluding webinars) 2020-02-07 11:00 FAS/ AN/ PROECTS/ B&T2020/ CON2085
Appointment of an accredited service provider to provide group life scheme to ECRDA for a period of 5 years 2020-02-07 11:00 SCMU 10 – 2019/20

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