There are five instances when SARS can refuse your Vat registration. Find out what they are to ensure SARS doesn’t reject yours

43984, 01 Dec. 2014

Tags: voluntary vat registration, registering for vat, sars, vat registration

Registering for Vat allows you to claim input tax back on your Vat returns. That’s why it’s great to be part of the Vat system.
The good news is, you can register for Vat voluntarily even if your taxable turnover doesn’t exceed the R1 million threshold in any 12-month period.
You can do this if:
  • You buy a business as a going concern from a determined date. And that business had a taxable turnover of more than R50 000 in a previous 12-month period;
  • Your enterprise is a welfare organisation, share block company or municipality and you made less than R50 000 in a previous 12-month period; or
  • You’ll only make taxable supplies after some time, but expect these to exceed R50 000 in value over the 12-month period.
But it’s not a given than SARS will accept your application.
That’s right.
If you apply for voluntary Vat registration, SARS can refuse to register you in five instances. Find out what these are so you can ensure the taxman doesn’t reject yours.
Believe it or not, but SARS can refuse to register you for Vat
SARS can refuse to register you for voluntary Vat registration in the following five instances:
  1. You don’t have a fixed business or residential address;
  1. You don’t keep proper accounting records about your enterprises;
  1. You don’t have a bank account for the business you’re running;
  1. You don’t bring the supporting documents with your VAT101 application form; and
  1. You were previously registered as a vendor for any enterprise, under the Vat Act and didn’t perform your duties in terms of the Act.
To make sure SARS doesn’t reject your application:
  • Have a fixed business address;
  • Keep proper records;
  • Open a bank account for your business; and
  • Have all the right support documents.
So do you have any recourse when if SARS refuses your vat registration?
If SARS refuses your Vat registration, it must give you reasons in writing.
Once you’ve read these reasons and truly believe you MUST register for Vat, make an appointment with your SARS office to take this matter further.
It could turn out that there’s a misunderstanding and SARS may see your point of view and register you.
Now that you know about these five instances, get everything about your Vat registration right so SARS has no reason to reject your application.

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