Sole proprietor, VAT and converting to a (Pty) Ltd.

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  • Heidivf
    Full Member
    • Jul 2014
    • 48

    #1

    [Question] Sole proprietor, VAT and converting to a (Pty) Ltd.

    One of my clients is a sole proprietor and is required to register for VAT as his turnover is above the threshold.
    He also wants to change from a sole proprietor to (Pty) Ltd at the same time.
    My question is: would it be better for him to register the new company and then register for VAT or register for VAT and then the company. Should he choose the second route, would the VAT number be transferrable from the sole proprietorship to the (Pty) Ltd or would that be a new number?

    Thanks in advance.
  • CLIVE-TRIANGLE
    Gold Member

    • Mar 2012
    • 886

    #2
    Should he choose the second route, would the VAT number be transferrable from the sole proprietorship to the (Pty) Ltd
    Unfortunately not. So rather your first alternative.

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