Q: We need assistance with a client who was a sole proprietor and VAT vendor. He
then registered a personal liability company in which he trades now. Can we
transfer the VAT number from the sole proprietor to the company? Can you please
shed some light on this for us and the steps needed to be taken.
A: The company is a new "person” for VAT purposes and it is our opinion that
the VAT Act does not provide for the transfer of a VAT number from one person
to another. The company would have to do a new registration and as the sole
proprietor will be conducting the enterprise in the company, he may have to
deregister for VAT once the business has been transferred to the company, which
subject to meeting all the requirements could be done as a going concern.
Disclaimer: Nothing in this query and answer should be construed as
constituting tax advice or a tax opinion. An expert should be consulted for
advice based on the facts and circumstances of each transaction/case. Even
though great care has been taken to ensure the accuracy of the answer, SAIT do
not accept any responsibility for consequences of decisions taken based on this
query and answer. It remains your own responsibility to consult the relevant
primary resources when taking a decision.
Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.