Following amendments made to the fourth schedule of the Value Added Tax 2010 (VAT) and as cited in S.I. 97 of 2024, effective 1 January 2024 the registration threshold for VAT shall be as follows:
| Registration Type | Current Threshold | New Threshold
Effective 1 January 2025
|
| Compulsory | Total value of taxable supplies made or reasonably expected to be made during a certain period equal to or greater than the threshold of SCR2,000,000.
|
Total value of taxable supplies made or reasonably expected to be made during a certain period equal to or greater than the threshold of SCR2,000,000
|
| Voluntary | Annual turnover below SCR2,000,000 | Taxable supplies at SCR100,000 minimum. |
Businesses must apply to compulsorily register for VAT to the Commissioner General at the beginning of the 6 month period, if there are reasonable grounds to expect that the business will exceed the voluntary registration threshold in that period; or at the end of any 12 month or lesser period.
The VAT application form available via www.src.gov.sc must be lodged to the Commissioner General within 14 days of the person becoming required to apply for registration.
If the business is already registered with the Seychelles Revenue Commission (SRC), the VAT registration form will be sent by SRC to the business to complete the registration process.
Businesses with an annual turnover starting at SRC100,000 may voluntarily register for VAT. To determine the eligibility of the application prior to granting approval, the SRC will as part of its due diligence conduct a field visit at the business premises to determine:
- If the business is actually making or will make taxable supplies.
- If the business has a fixed place of operation.
- If he business has commenced trading and is keeping proper records of all transactions.
If the business is complying with all obligations under the revenue laws including licensing for cash register and has enough reasonable grounds to believe that the business will keep proper records and furnish regular and reliable VAT returns to SRC.
Notwithstanding subsection (1) of the VAT (amendment) Bill (No 22 of2024), the Revenue Commissioner may refuse the registration of any person based on following reasons:
- The person has not met the threshold or criteria specified under section 9 (1) to (2)(d) of the Act; or (b) the person has no bank account.
- The person has previously been registered for VAT on a voluntary basis but has failed to fulfil the conditions stated under the VAT Act
- The Commissioner General has concerns for potential abuse or fraud pursuant to section 8(7)(c).”
Having met all these requirements, upon approval of registration, the business will be provided with a letter and certificate confirming VAT registration and a VAT sticker to display at the principal place of business.
For increased education on the changes made to the VAT ACT, taxpayers are advised to email the SRC Advisory team on advisory.center@src.gov.sc or call 4293737.