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.
Sale of 74 industrial and two unregistered portions of erf 1 Caledon situated in Chavonnes Way Caledon 2022-06-24 12:00 TPM 01/2022/23
Request for Proposal: Children on the Move End of Project Evaluation 2022-06-03 17:00 No reference number
Construction of a security room at the Nama Khoi Workshop in Springbok 2022-05-30 10:00 Q/NC062/10/2021-2022
Control of aquatic and terrestrial invasive plants, removal and disposal of biomass and litter from site 2022-06-21 10:00 343S/2021/22
Maintenance of lifts and escalators for a period of 1 year at King Shaka International Airport 2022-06-21 12:00 KSIA6813/2022
Operation of Tuck shop at Midrand High School 2022-06-03 12:00 Tuckshop Tender MHS_05/2022
Individual Consultant Selection – to Support Procurement and Disbursement Implementation for Bank Finance Projects 2022-06-03 15:00 ET-AUC-293330-CS-INDV
Terms of reference for the recruitment of five (5) consultants for the production of the 2023 Africa’s Development Dynamics Report 2022-06-03 15:00 No reference number
Consultancy services to: Develop proposal for the division of labour between the African Union, Regional Economic Communities, Regional Mechanisms and Member States, pursuant to assembly decisions Assembly/AU/Dec.635 (XXVIII), Ext/Assembly/AU/Dec.1 (XI) and Assembly /AU/Dec.798 (XXXIV) 2022-06-30 15:00 AUC/BCP/C/002
Re-Advert: Appointment of a labour relations specialist/consultant to assist with chairing disciplinary proceedings 2022-05-26 13:00 EWSETA/RFQ/015/2022
Request for proposal for the placement on the municipal panel of attorneys for a period of 36 months 2022-06-09 12:00 16/2022
TD-04/05/2022: Erection and construction of a new container hive next to Thusong and Bongulethu Police Station, Oudtshoorn 2022-06-20 12:00 FORMAL TENDER TD-04/05/2022:
Tender for the appointment of a service provider for online electronic search and information verification for a period of three (3) years from date of appointment 2022-06-20 12:00 FIN003/2022
On-site calibration of power meters at the SABS. 2022-05-24 11:00 RFQ 20570
Re-advert: Appointment of a service provider for the provision and management of security services for the period of three years 2022-06-15 12:00 T02/2022
Re-advert: Appointment of a panel of consulting engineering firms for various projects in Dr Pixley Ka Isaka Seme Local Municipality as and when required for a period of three years 2022-06-03 12:00 T01/2022
Rendering of medical related services as well as professional and community counselling services for a period of three (3) years from date of appointment 2022-06-20 12:00 BA024/2022
Provision for Pest Control and Sanitation Services 2022-06-13 12:00 CO 22/18 O
Supply and delivery of LBO-NCPM1064-AR: LBO pre-mounted in the oven and a Crystal oven with precision temperature controller to iThemba LABS-NRF, Faure, Western Cape 2022-06-02 11:00 iLABS/RFQ 2022/23:51
Provision for Medical Surveillance Services for Staff and Students 2022-06-13 12:00 CO 22/17 O

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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