South Africa VAT registration restrictions

24 September 2011

The South African VAT authorities have put in new checks for non-resident companies seeking VAT registrations.  This initiative has been introduced to help cut down on the levels of VAT fraud - an expanding problem mirroring Europe's difficulties.

Click here to read about South African VAT compliance

The principle new requirement from SARS, South African Revenue Service, is that traders can produce three-months' worth of bank statements.  Previously, only a communication from a reputable bank was required. 

This obligation presents particular difficulties for foreign traders who use their VAT agent's bank account to make settlements.  Similarly, if non-resident companies use local group subsidiaries' bank accounts to settle VAT liabilities.

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