THE VAT DEREGISTRATION PROCESSMotivation for the deregister for VAT could be caused by a various reasons. The most common reasons would be when a business ceases, being sold or your turnover could be below R 1 million. When you decide to deregister for VAT you need to keep a few important things in mind. On date of deregistration all assets need to be valued. I usually advise a client to get an independent valuation. These assets can include commercial property, vehicles or equipment. The VAT on this capital values need to be declared and paid to SARS.
When selling your business as a going concern you need to submit the offer to purchase. In the case of a going concern you do not need to submit payment for the capital VAT. Please also look at the link below to equip yourself with the important aspects of a going concern contract.
VAT - Going Concern
SARS may cancel a vendor's registration where SARS is satisfied that the vendor no longer complies with the requirements for voluntary registration... or
When the turnover of the business is less than R 50,000 for a period of 12 months.
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