The Commissioner will be satisfied that a person carrying on an enterprise can reasonably be expected to make taxable supplies in excess of R50 000 in the twelve months following the date of registration, where one or more of the following circumstances exists:
(1) Taxable supplies made for more than two months:
| (a) |
Proof that the average value of taxable supplies made by the person in the preceding months as contemplated in paragraph (b), prior to the date of application for registration, exceeded R4 200 per month; |
| (b) |
For purposes of determining the average value of taxable supplies, the person must use the value of taxable supplies made for a minimum of two and a maximum of eleven months immediately preceding the date of application; |
| (2) |
Taxable supplies made for one month: In the case where the person has only made taxable supplies for one month immediately preceding the date of application for registration, proof that the total value of taxable supplies made by the person in that month has exceeded R4 200; |
| (3) |
Written Contracts: The person is, in terms of a contractual obligation in writing, required to make taxable supplies in excess of R50 000 in the 12 months following the date of registration; |
| (4) |
Finance Agreements: A copy of the relevant agreement where the person has entered into— |
| (a) |
a financial agreement with a bank registered in terms of the Banks Act; |
| (b) |
a "credit agreement" with a "credit provider" as defined in the National Credit Act; |
| (c) |
an agreement with a designated entity, public authority or any other person who continuously or regularly provides finance; or |
| (d) |
a financial agreement with a person that is not a resident of the Republic; |
wherein the person mentioned in (a), (b), (c) or (d) above has agreed to fund the expenditure incurred or to be incurred in the commencement or furtherance of the enterprise and the total repayments in terms of that financial, credit or other agreement will in the 12 months following the date of application for registration exceed R50 000; or
(5) Expenditure:
(a) Proof of—
| (i) |
expenditure incurred or to be incurred in connection with the commencement or furtherance of the enterprise, as set out in any written agreement entered into by such person; or |
| (ii) |
capital goods acquired in connection with the commencement of the enterprise; and |
| (b) |
Proof of payment or any extended payment agreement entered into in respect of items contemplated in subparagraph (5)(a)(i) and (ii), where applicable, evidencing that payment in respect of these items— |
| (i) |
as at the date of application for registration has exceeded R50 000; |
| (ii) |
will in any consecutive 12 month period commencing before and ending after the date of application for registration exceed R50 000; or |
| (iii) |
will in the 12 months following the date of application for registration exceed R50 000. |
Administration of Estates Act, 1965
