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South Africa VAT registration restrictions

  • VAT
  • 01 September 2011 | Richard Asquith

South Africa VAT registration restrictions

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.

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.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.