VAT Exit Charge

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.


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