Five instances when SARS can refuse your Vat registration
There are two types of Vat registration: Compulsory registration and voluntary registration.
Experts at the Accounting & Tax Club explain that if you have a business and your total taxable turnover exceeds or is likely to exceed the R1 million threshold in any 12-month period, you have no option; you must register for Vat (compulsory registration).
The experts go on to say, on the other hand, even if your taxable turnover doesn't exceed the R1 million threshold, you'll be allowed to register for Vat voluntarily in any of these situations:
If you apply for voluntary registration, SARS can refuse to register you in the following five circumstances:
Is there anything you can do if SARS refuses your Vat Registration?
The Practical Vat Loose Leaf Service says if SARS refuses your Vat registration, it should give you reasons you for doing so in writing.
'Based on these reasons and if you feel you MUST Vat register, you should then make an appointment with your SARS office to take this matter further,' adds the Loose Leaf Service.
The bottom line: If you want to ensure SARS doesn't refuse your Vat registration, make sure all your affairs are in order before your register.
P.S. Every year, SARS rejects 90% of all Vat Registrations. Don't become a statistic.