BRING BACK THE PAYMENTS BASIS! Restrictions on who qualifies for VAT registration on the payments basis cause untold hardships on small business.

The article discusses the restrictions on who qualifies for VAT registration on the payments basis and the hardships this causes for small businesses. It explains that VAT registration is required for businesses with an annual turnover exceeding R1 million, and VAT is paid to SARS every two months. The article argues that small businesses that do not qualify for VAT registration on the payments basis face cash flow issues when customers take a long time to pay their accounts. The article suggests that allowing small businesses with a turnover below a specific threshold to register for VAT on the payments basis would alleviate this cash flow squeeze. However, this would require an amendment to the VAT Act. [Extracted from the article]