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Have you voluntarily registered for VAT?

With VAT coming into effect as of July 1, 2012, businesses registered with Seychelles Revenue Commission (SRC) are enquiring if they need to register for VAT. Businesses may register compulsorily (those businesses making a sales turnover of 5million or more per year) or voluntarily.

Voluntary registration applies to those businesses making taxable supplies and whose annual sales turnover is below the VAT threshold of SR 5 million, but chooses to register for VAT on a voluntary basis. These businesses are not required under the Value Added Tax Act, 2010 to register for VAT.

What are the criteria for you to register voluntarily?
In order to be considered for voluntary registration, your business needs to meet the following criteria:
  • Makes or will make taxable supplies (sale of goods and services);
  • Has a fixed place of doing business in the Seychelles;
  • Keeps or will keep proper records (Book keeping of input and output tax, Invoices cash books, has a VAT cash Machine);
  • Has a good compliance history with SRC (falling in line with all SRC requirements as a registered business).
What will you benefit as a VAT registered business?
When you register for VAT you will acquire some benefits.

Only a VAT registered person can charge VAT on supplies and offset input tax against VAT collected (output tax). There are thus potential cash flow advantages of being able to charge VAT on sales and claim back VAT on purchases.

For example:
  • If the person sells zero-rated items and buys standard-rated items the person would receive a VAT refund from SRC;
  • If the person has not yet sold anything or doesn’t sell anything during a VAT accounting period, the person may still be able to claim VAT back on its purchases.
Registration for VAT has already started in February 2012 and you can submit your application form for registration at any time from that date. However, SRC is encouraging you to register early, so that you can benefit from the various VAT workshops that will be organised in March and April 2012.

What happens after my application has been submitted to SRC?
Once you have submitted your VAT registration form, SRC will:
  1. Acknowledge receipt of your form;
  2. Contact you if there are any issues that needs to be resolved;
  3. Issue you with a letter confirming the status of your registration;
  4. Issue you with your VAT Registration Certificate if your application has been approved.
How will I know whether my application has been approved?
All applicants will be informed in writing about the status of their application.

If SRC is satisfied that your business meets the criteria for voluntary registration, a letter of registration and a VAT registration certificate will be issued to you.

If your application is not approved, SRC will explain the reasons in writing as to why you have not been registered. If you are not satisfied with the decision by SRC, you may object and appeal, if necessary.

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


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