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'Does deregistration end my Vat liability immediately?'

by , 13 August 2014
You probably know that you can cancel your Vat registration if:

1. You've sold your business;

2. You applied for registration of a new business but never started operating the business;

3. The value of your taxable supplies during any 12-month period is less than R1 million (excluding Vat); and

4. You cease to carry on any enterprise and don't intend to start conducting any enterprise in the next 12 months.

But do you know if being out of the Vat system ends your Vat liability immediately? Read on to find out the answer to this question so you can adhere to your Vat duties and avoid penalties.

 

*********** Product endorsement ************
 

Do you know the 13 Vat review secrets SARS doesn't want you to know about?

Neither do most people.

Click here to find out what they are
 

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Bad news! Deregistration doesn't end your Vat liability immediately


Contrary to popular belief, being out of the Vat system doesn't mean you're done with SARS and all your Vat duties.

Even if your cancellation goes through, it doesn't end your responsibilities, say the experts behind the Practical Vat Loose Leaf Service.

They add: 'You're still liable to account for output tax for any and all unsold assets and stock you held on the date you cancelled your registration.'

And don't even think you can dodge SARS.

If SARS approves your cancellation, it follows up with a final audit on your business to check you've correctly accounted for Vat. So it'll definitely make sure you pay whatever amount your business owes.

Well there you have it: Deregistration doesn't mean it's the end of the matter when it comes to your Vat duties. So make sure you comply with Vat law so you can avoid penalties.

PS: If you need more information of deregistration, the Practical Vat Loose Leaf Service is your best friend. It'll tell you how to cancel your Vat registration, give you tips to ensure your deregistration happens quickly and much more.




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