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Have you registered your business for VAT yet?

Value Added Tax will be implemented on July 1 2012 and it will replace the Goods and Services Tax (GST). The VAT registration process has started since February 2012 and Seychelles revenue Commission (SRC) has sent a letter and a VAT registration form to all existing businesses registered with SRC to confirm their registration status in relation to VAT.

How do businesses confirm their VAT registration status?
As businesses, you will confirm your VAT registration status by completing the VAT registration form. On the form, you should tick YES or NO when asked if:
  • you make taxable supplies;
  • your annual sales turnover for 2011 has exceeded the VAT threshold (5 Million or more);
  • your annual sales turnover for 2012 is expected to exceed the VAT threshold;
  • you choose to be registered on a voluntary basis if your annual sales turnover has not exceeded and is not expected to exceed the VAT threshold.
You will then have to sign the VAT registration form and return it to SRC. The deadline for submitting VAT registration form was February 29. However this deadline has been provided to enable you to register early so that you can be identified and targeted for specific VAT workshops. You can still submit your VAT registration forms after February 29 2012, but you must do so prior to July 1 2012 in order for you to determine if you are required to register for VAT or not.

What are the requirements for VAT registration?
Only a business making taxable supplies will be able to register for VAT, so if you do not make any taxable supply you will not be able to register for VAT. You make a taxable supply when you sell a good or a service which is taxable under the VAT Act 2010. To determine if your supply is taxable, you can refer to the exemption list in Schedule 1 (Part II) of the VAT Act 2010). If your supply is specifically listed as exempted, you are not making taxable supplies. Alternatively, you can call us on 4293741/42/43 if you are unsure if you are making taxable supplies or are not.

There are two types of VAT registration: compulsory and voluntary. If you make an annual sales turnover which is equal to or exceeds the VAT threshold of SR 5 million you are required to register on a compulsory basis. If you make an annual sales turnover which is less than the VAT threshold of SR 5 million you are not required to register for VAT, however, you can choose to register for VAT on a voluntary basis.

In order for your business to be registered on a voluntary basis you will have to satisfy the following requirements:
  • have kept and will keep proper records,
  • are compliant with all other revenue laws, and
  • have a fixed place of doing business.
Businesses with an annual sales turnover of less than SR5 million that do not satisfy the requirements for VAT registration will not be registered for VAT.

How does a business know when it is registered?
Once you have submitted your VAT registration form to SRC, we will verify that you meet the requirements for VAT registration. If you successfully meet all the requirements, you will be officially registered for VAT and will be sent a letter of registration from SRC. If you do not meet the requirements for VAT registration, we will send you a letter informing you that you are not registered for VAT.

What happens after a business is registered?
In March 2012 and April, SRC will hold targeted workshops for VAT registered businesses in order to explain VAT and help businesses prepare for VAT. SRC encourages all businesses to register early so that they can benefit from these workshops. In June 2012, you will receive a VAT registration certificate from SRC which you will have to display in a prominent area in your place of doing business. If you have multiple places of doing business you will have to request for certified copies from SRC in order for you to display your certificates in all of your other locations. From July 1 2012 until the date that you are no longer registered for VAT, you will have to charge VAT at 15% (or 0% if you make zero-rated supplies) on all your taxable supplies. You will have to complete a monthly VAT return, from which you will be able to deduct all of the VAT that you incurred when operating your business.

For more information
You can contact Seychelles Revenue Commission on 4293737 or email us at
The Value Added Tax Act, 2010 is available here.

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