Can you register for VAT in a region different from where your business operates?
12 May 2015
Posted by: Author: SAIT Technical
Author: SAIT Technical
Q: I have a
client who is based in JHB, runs his business in JHB but has branches in
KZN. We do the bookkeeping and
accounting in KZN.
Can we do the VAT registration here for him although the
main office is in JHB?
Value-Added Tax Act doesn’t prescribe at which office a person must register as
According to the Guide for completion of VAT registration
application forms (VAT-REG-02-G01) the physical address details must be
completed by all applicants and require the physical address of the business to
confirm the location from where the business is conducted. It therefore refers to the location where the
business is conducted and we understand that it is SARS’s practice to register
the enterprise at the SARS office closest to this address. It would certainly not be the SARS office
where an independent party does the accounting work.
We see no reason why an application can’t be made to have it
registered at a different address, but SARS may still insist that it is
registered at the place where the business is situated or carried on. The VAT404 states that:
"The VAT101 application for registration must be submitted
in person at the SARS office or Large Business Centre (LBC) nearest to the
place where your business is situated or carried on. This means that, in the
case of a sole proprietor the individual concerned must submit the application
in person, or in the case of any other person such as a partnership, company or
trust fund, the relevant representative vendor must submit the application in
person. Alternatively, a registered tax practitioner may appear in person on
behalf of the applicant. A vendor that has several enterprises/branches/divisions
which will operate under one VAT registration number, should register in the
area where the main enterprise/branch/division is located.”
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.