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Four circumstances where you can ask SARS to cancel your Vat registration

by , 19 December 2013
Did you know there are certain instances where you can ask SARS to cancel your Vat registration? Read on to find out more about this...

As mentioned, Vat law allows for deregistration.

There are the four circumstances where you can ask SARS to cancel your Vat registration.

These are:

  1. The value of your taxable supplies during any 12-month period is less than R1 million (excluding Vat).
  2. You cease to carry on any enterprise and don't intend to start conducting any enterprise in the next 12 months.
  3. You applied for registration of a new business but never commenced operating the business.
  4. You've sold you business.

How to apply to have your Vat registration cancelled

If you want to apply to have your registration as a Vat vendor cancelled, make the application to SARS in writing. This can be in the form of a letter, or on the standard VAT123 form.

Use this checklist to speed up your Vat deregistration

The Practical Vat Loose Leaf Service says you must give SARS the following information with your notification:

  • The date on which your business closed, will close or will be sold.
  • Confirmation of whether your business was sold as a going concern and whether the business assets will be sold to the purchaser as part of the transaction.
  • The name and address of the person you're selling your business to.
  • A copy of the sales agreement (if applicable).
  • If your business isn't sold as a going concern, or merely ceases or closes, provide:
  1. A list of all the assets on hand at the date on which the business was or will be sold or will close.
  2. Proof if the assets were sold,

That's not all.

If the assets are retained, calculate output Vat on the lowest of cost or open market value of assets and pay this over to SARS in your final Vat return.

Remember, SARS has discretion and may disallow the cancellation of your registration.

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