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Registering for Vat as a foreign enterprise? Appoint a Vat representative who meets these three criteria

by , 19 February 2015
If you're a non-resident company and supply goods or services in South Africa, you must register for Vat if your supplies exceed R1 million in any 12 month period. Or you expect it to exceed R1 million in the next 12 months.

You must also appoint a Vat representative to take care of your company's Vat registration process.

But this doesn't mean you're free to appoint anyone you see fit.

The Vat Act makes it clear that your Vat representative must meet three requirements. If he doesn't, not only will you put your company's financial affairs at risk. But SARS could reject your Vat registration application. And tell you to appoint a suitable Vat representative. This will cause delays in your Vat registration process.

To make sure this doesn't happen, keep reading to find out the three requirements your Vat representative must meet.


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Are you a foreign company? Here are the three conditions the Vat representative you appoint must meet when you register for Vat
 

If you don't register, your company's in breach of Section 1 and Section 23 of the Vat Act. This means you'll be liable for penalties in terms of the Tax Administration Act.
 
Now when you register for Vat as a non-resident company, you must appoint a Vat representative and make sure he meets three conditions.
 
Your Vat representative must:
 
  1. Be a natural person (i.e. a human being);
 
  1. Be a South African resident; and
 
  1. Assume responsibility for the Vat duties and obligations of the business.
Note: Make sure he has proper qualifications and is competent. After all, he'll deal with your company's Vat duties and finances. If he messes up, SARS will also hold you liable for not complying with the Vat Act.
 
When you appoint your Vat representative, you must notify the Commissioner. You must do this within 21 days after he becomes responsible for performing the duties under the Vat Act, says South African Institute of Chartered Accountants (SAICA).
 
Now that you know the three requirements the Vat representative you appoint when you register for Vat must meet, comply.
 
PS: For more information on Vat registration, check out the Practical Vat Loose Leaf Service.


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