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.
Rendering of a comprehensive cleaning and gardening service at Helderberg District Hospital, Strand CDC, Macassar CDC, Gustrouw CDC and Nomzamo CDC under the control of the Department of Health, Western Cape Government for a three (3) year period 2019-12-06 11:00 WCGHSC0197/ 2019
Appointment of a list of preferred suppliers to conduct geotechnical laboratory testing across South Africa on an as-and-when required basis for a period of three (03) years for the Council for Geoscience. 2019-12-10 11:00 CGS- 2019- 041K
Construction of bulk infrastructure for zone 10 in the COEGA SEZ 2019-12-02 12:00 CDC/ 526/ 19
Idutywa Magistrate Court: Construction of facilities for people with disabilities 2019-12-10 12:00 CDC/ 332/ 19
Appointment of a professional service provider to provide occupational health services at the Coega Development Corporation Wellness Centre. 2019-12-02 12:00 CD/ 524/ 19
Centane Magistrate Court: Construction of facilities for people with disabilities 2019-12-09 12:00 CDC/ 331/ 19
Bityi Police Station: Condition based maintenance of structural, electrical, mechanical and civil 2019-12-09 12:00 CDC/ 133/ 19
Provision of the supply of 10x laptops 2019-11-15 13:00 EWSETA/RFQ/53/2019
Terms of Reference for the Appointment of a Service to Provider to Implement The Avmp Soil Rehabilitation Projects In Nqandu at Mbhashe Local Municipality Under Amathole District in the Eastern Cape Province 2019-11-29 11:00 DRDLR: EC 009(2019/ 2020)
Appointment of Service Provider to Supply and Deliver Plant Production Inputs (Fertilizers, Lime and Chemicals) as and when required for a period of 36 months in the Kwa-Zulu Natal Province. 2019-11-28 11:00 SS- KZN 7/ 1/ 6/ 3 (737) LRD
The Appointment of Service Provider to Supply and Deliver Dairy Cattle, Related Feed and Medication as and when required for a period of 36 months in the Kwa-Zulu Natal Province 2019-11-29 11:00 SS- KZN 7/ 1/ 6/ 3 (736) LRD
Specification to Appoint a Service Provider for the Supply, Delivery and Offloading of a 500 Kva Generator For Xashimba Abattoir in the Enoch Mgijima Local Municipality in the Chris Hani District 2019-11-22 11:00 DRDLR: EC 011(2019/ 2020)
The Provisioning of Maintenance and Support for an Automated Ballistics Identification System (ABIS) to South African Police Service for the period of three (3) years 2019-11-29 11:00 RFB 2032/ 2019
Qualified Service Providers with Relevant Skills and Experience Are Invited to Submit their Tenders for Repair, Service and Maintenance of Air Conditioning and Refregiration for a contract period of three(3) years for Lephalale TVET College 2019-12-03 11:00 LEPTVETCOL2019/ 004
Suppliers and Service Providers with Relevant Experience are Invited to Submit Their Tenders for Supply, Delivery, Commissioning and Maintenance of New Photocopier Machines for a contract period of three(3) years for Lephalale TVET College 2019-12-02 11:00 LEPTVETCOL2019/ 003
Qualified Service Providers With Relevant Skills and Experience are Invited to Submit Their Tenders for Repair and Maintenance of Plumbing Works for a Contract Period of Three(3) Years for Lephalale TVET College 2019-11-29 11:00 LEPTVETCOL2019/ 002
West Coast College hereby invites tenders from tenderers to provide transport to students to Malmesbury and the different campusses for a period of three(3) years. 2019-11-29 11:00 WCC- TS- 2019
Scheduled Maintenance to Various Refrigeration, Mortuaries and Heat Pumps - Buffalo City DM in Eastern Cape Department of Health 2020-01-17 11:00 SCMU3- 19/ 20- 0219- HO
Scheduled Maintenance to Various Refrigeration, Mortuaries and Heat Pumps - Nelson Mandela Bay DM in Eastern Cape Department 2020-01-17 11:00 SCMU3- 19/ 20- 0222- HO
Scheduled Maintenance to Various Refrigeration, Mortuaries and Heat Pumps - Chris Hani DM in Eastern Cape Department of Health 2020-01-17 11:00 SCMU3- 19/ 20- 0220- HO

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