Title page for ETD etd-07252011-142722

Document Type Master's Dissertation
Author Breedt, Elanie
Email elanieb@live.co.za
URN etd-07252011-142722
Document Title Is turnover tax a benefit or a burden : an exploratory study of micro business owners
Degree MCom
Department Taxation
Advisor Name Title
Prof M Cronje Supervisor
  • turnover tax
  • omsetbelasting
  • SARS
Date 2011-04-07
Availability restricted
SARS introduced a presumptive tax system namely turnover tax for micro business owners in March 2009. The aim of turnover tax is to reduce the tax burden, thereby encouraging entrepreneurship and creating an environment where small businesses can survive and grow (SARS, 2009:2).

The advantages of the turnover tax system includes relieve of the administrative tax compliance burden on micro business owners. Micro businesses earning high profit margins will also be liable for less tax than would have been payable on the standard income system.

There are several drawbacks to the turnover tax system. Firstly, this system does not favour businesses running at a loss or earning lower profits. Secondly, a micro business that is registered for turnover tax will not be permitted to be registered for VAT as well (SARS, 2009:3). The micro business owner would be liable for VAT deregistration costs. Another negative consequence of deregistering for VAT is that the business will no longer be able to produce VAT invoices. The business may lose valuable clients as a result thereof.

The micro business owner has to carefully consider the influence that turnover tax can have on the bottom line of the business before registering for it.

AFRIKAANS : SARS het in Maart 2009 n waarskynlikheidsbelasting naamlik omsetbelasting bekend gestel. Die doelwit van omsetbelasting is om die belastinglas te verminder om daardeur entrepreneurskap aan te moedig en n omgewing te skep waarin klein besighede kan oorleef en groei (SARS, 2009:2)

Die vermindering van die administratiewe las van belasting op die eienaars van mikrobesighede is een van die voordele wat omsetbelasting inhou. Mikrobesighede wat ho winsmarge het, sal voordeel uit die omsetbelastingstelsel trek deur minder belasting te betaal as wat betaalbaar sou wees onder die standaardinkomstebelastingstelsel.

Die omsetbelasting stelsel hou vele nadele in. Eerstens, is die stelsel nie voordelig vir n onderneming wat n verlies maak of laer winsmarge het nie. Tweedens, word n mikrobesigheid wat vir omsetbelasting geregistreer is nie toegelaat om ook vir BTW geregistreer te wees nie (SARS, 2009:3). Die mikro- ondernemer sal as gevolg hiervan verantwoordelik wees vir die deregistrasiekoste van BTW. n Ander nadeel van die deregistrasie vir BTW is dat die onderneming nie meer in staat sal wees om BTW fakture uit te reik nie. Die besigheid kan waardevolle klinte as gevolg hiervan verloor.

Die mikroondernemer moet die gevolge van omsetbelasting op die netto wins van die besigheid deeglik oorweeg voordat hy daarvoor registreer.

2010, University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria.

Please cite as follows:

Breedt, E 2010, Is turnover tax a benefit or a burden : an exploratory study of micro business owners, MCom dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://upetd.up.ac.za/thesis/available/etd-07252011-142722/ >


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