Before we tell you the process, make sure you know whether SARS will accept your deregistration request or not
When it comes to Vat
, SARS will glady accept your request to register, but it'll only agree to cancel your Vat registration
1. You sell your business, 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.
You can also get off the Vat
system if you applied to register a new business, but never started to operate it.
It's a tricky process, but if you have the right infomation at hand, it can go faster than you think. Here's what you need to know...
*********** New release ************
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
Giving SARS this information will help you cancel your Vat registration faster
When you want to cancel your Vat registration, apply to SARS in writing. You can send a letter or use the standard VAT123 form. To speed things up, the Practical Vat Loose Leaf Service, says you should give SARS:
#1: The date on which your business closed, will close or be sold.
#2: Confirmation of whether you're selling the business as a going concern and whether you're selling business assets to the buyer as part of the transaction.
#3: The name and address of the person to whom you're selling your business.
#4: A copy of the sales agreement (if applicable)
#5: If the business isn't sold as a going concern, or merely ceases or closes, you must give SARS:
A list of all the assets on hand at the date on which the business was or will be sold or close.
If the assets were sold, proof they've been sold.
If you keep the assets, you must calculate output Vat on the lowest cost or open market value of those assets and pay the amount to SARS in the final Vat return.
It's that simple. Cancelling your Vat registration will go quickly if you give SARS the information we've outlined. Just remember that the buck stops with SARS – it'll ultimately decide whether or not to deregister you.
PS: Confidential: 13 Vat secrets SARS doesn't want us to publish
These secrets will give you insider information on how to red-flag potential Vat risk areas, before the SARS team does.
Click here to find out what they are.