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VAT Registration Process for Existing Businesses

Value Added Tax (VAT) will be implemented on July 1 2012, replacing the Goods and Services Tax (GST). Under the VAT system only registered businesses will be able to charge VAT on their sales. As such, Seychelles Revenue Commission (SRC) will need to register those businesses.

How to register for VAT
In January 2012, SRC will send out a VAT registration letter and an accompanying registration form to all existing businesses asking them to indicate whether:
  1. their annual sales turnover for the year 2011 falls below or exceeds the VAT threshold and;
  2. their annual sales turnover for the year 2012 is expected to fall below or exceed the VAT threshold, based on their business expectation and
  3. they wish to be considered for VAT registration on a voluntary basis - in the event that their annual sales turnover for 2011 falls below the VAT threshold and their the annual sales turnover for 2012 is not expected to exceed the VAT threshold of SR 5 million.
Businesses whose annual sales turnover is equal to or exceeds the VAT threshold of SR 5 million are obligated under the VAT Act to register for VAT, while those with an annual sales turnover of less than SR 5million will choose whether to be VAT registered or not.

SRC will be calling on all businesses to return the completed and signed form to any of its offices by end of February 2012 so that they can benefit from specific VAT workshops that will be organized starting March 2012, prior to the introduction of the VAT on July 1 2012. Businesses which register late might miss out on those workshops.

What happens if a business does not get any letter from SRC?
It is the intention of SRC that all existing registered businesses are issued with a letter. But in the event that any business does not receive a letter from SRC, the business is requested to contact SRC at the earliest possible so that a letter can be issued.

What will happen after the registration form has been submitted to SRC?
Based on what the business declares on the form SRC will either:
  • Register the business on a COMPULSORY basis if:
    • their annual sales turnover was above the VAT threshold for the year 2011 and their 2012 annual turnover is expected to exceed the VAT threshold, OR
    • their annual turnover was below the VAT threshold for the year 2011 but they indicated to SRC that their 2012 annual turnover will fall within the VAT threshold.
  • Consider to register the business on a VOLUNTARY basis if:
    • their annual turnover for 2011 was within the VAT threshold but they indicated to SRC that it will fall below the VAT threshold in 2012 AND
    • the business indicated to SRC that it wished to be considered for voluntary registration.
Voluntary registration is NOT automatic after the business has indicated that it wishes to be registered for VAT. Certain criteria will have to be met in order for them to be registered. More details of the criteria for voluntary registration will be provided later.

SRC will thereafter send out another letter to confirm whether the business has been registered for VAT (either on a compulsory or voluntary basis) or not. All registered businesses will also be issued with their VAT certificate in June 2012.

What will happen to voluntary applicants who are denied VAT registration?
SRC will inform all applicants who did not meet the criteria for voluntary registration why their applications were not approved. If the applicant does not agree with the decision taken by SRC, she/he can always make an objection to the SRC.

What will happen if a business submits its form but does not hear from SRC?
All businesses will be notified of the status of their application within 1 week of SRC having received the form. In the event that a business does not receive any letter of notification from SRC within the timeframe of one week, the business will need to contact SRC and we will ensure that it receives the letter.

What will happen if the registration form is not submitted?
Even if the form is not submitted, SRC will register the business provided there are reasonable grounds to believe that the business should be compulsorily registered. A letter will be sent to those businesses notifying them that they have been registered . As mentioned earlier if the business does not agree with the decision taken, it can always send its objection to SRC.

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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