Tax and SARS knowledge base
How do I cancel a SARS VAT registration?
How do I cancel a VAT registration, and what happens in the final VAT period?
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Direct answer
Ask SARS to cancel the VAT registration using the current deregistration process and the form that matches the registration. VAT123e applies to an enterprise and VAT123T to a separately registered branch. Keep charging, accounting for and paying VAT until the effective cancellation date confirmed by SARS.
The final VAT return must cover the last tax period. It can include output tax on certain assets still held when the enterprise ceases to be a vendor, as well as any final deductible input tax supported by valid records. SARS will not finalise cancellation while outstanding VAT obligations or liabilities remain unresolved.
What this means in practice
Stopping trade, falling below the threshold or selling a business does not by itself switch off the VAT number. The legal reason and requested effective date must be supported. Continue issuing compliant tax invoices and filing VAT201 returns until the SARS date, even if trading has already slowed or stopped.
The asset adjustment is often the costly surprise. Stock, equipment and other assets on which input tax was allowed can create output tax in the final period. Calculate this before closing the bank account or distributing assets.
Step-by-step
- Establish why cancellation is permitted and choose a supportable effective date.
- Reconcile every VAT201, payment, refund and SARS statement up to that date.
- Inventory assets on hand and identify prior input-tax claims.
- Complete VAT123e, or VAT123T for a separate branch, and submit it through the current SARS channel with supporting documents.
- Continue normal VAT compliance until SARS confirms the cancellation date.
- Prepare the final VAT201, including the required asset output-tax amount in the correct field and supported final input tax.
- Pay or resolve the balance, keep the cancellation notice and update invoicing systems only from the effective date.
Documents and records to keep
- Deregistration form, submission reference and SARS outcome.
- Reason for cancellation and evidence of turnover or cessation.
- Final trial balance, VAT reconciliation and asset register.
- Tax invoices, credit notes and proof of payment.
- Final VAT201 and statement of account.
Important limits and exceptions
A business sale, group restructuring, branch cancellation or going concern can change the VAT result. The final asset calculation is not always the original purchase price. Also check whether later invoices, bad debts or credit notes require adjustment.
When to get tailored advice
Get help before applying if property, vehicles, valuable stock, connected-party transfers, a business sale or unresolved refunds are involved. The cancellation date and final asset treatment should be planned together.