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If any of these four situations apply to your business, cancel your Vat registration

by , 29 October 2014
You have to register for Vat if your company makes of profit of R1 million or more in a 12 month period. This means you must charge your clients Vat and claim input tax back on the supplies you buy.

But did you know that Vat registration isn't permanent?

You can deregister if you need to, but it's only for certain circumstances.

Read on to discover four situations when you can deregister your company from Vat...

 

You can deregister your company from Vat in these four situations

 
There are 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; or
 
4. You sold your business.
 
Here's what you need to do if any of these four situations apply to your company.
 
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Do this to deregister your company if any of these four situations apply

 
You can apply to have your registration as a Vat vendor cancelled. You must make the application to SARS in writing. This can be in the form of a letter, or on the standard VAT123 form.
 
You must also provide SARS with the relevant supporting documents. For example, if you sold your company, you must show SARS a copy of the deed of sale.
 
So deregister your company if any of these situations apply so you don't keep paying Vat.
 
Check out the Practical Vat Loose Leaf Service for more on deregistering from Vat
 


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