South Africa VAT registration restrictions
- Aug 31, 2011 | Richard Asquith
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.