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VAT Exit Charge
- 27 March 2024
- VAT
- The Tax Faculty Tax Specialist
This article is based on tax law for the year ending 28 February 2025.
1. The Problem / Facts
Should the value of assets, for which VAT has never been claimed, be included in the total value of assets on the VAT123e form when ceasing to be a vendor?
2. Applicable Law
VAT Act 89 or 1991
3. Application of the Law to the Facts
For the cancellation of VAT registration, you should include the value of assets on which VAT was never claimed. These assets contribute to the overall value of your business assets, even if VAT was not claimed on them initially. Therefore, include them in the total value of assets on the form dispute the act being silent about this when ceasing registration.
Join Mandy Graaf and Carmen Westermeyer where they will delve into complex issues such as employees working abroad, distinguishing between fringe benefits and allowances.
- Click here to watch the intro video
- Click here to read more about this event