Value Added Tax De-registration

According to Section 18, registered person may at anytime apply for cancellation of registration if:-

  • The value of his taxable supplies falls below theregistration limit of P500 000.00 per anum providedthat the person has been  registered for a period of at least 2 years
  • He ceases to carry on any taxable activity and will not carry on any taxable activity within 12 months after that date
  • Where he has applied for registration in anticipation of commencing a taxable activity and has not commenced that taxable activity
  • A registered person has successfully applied for voluntary registration and it subsequently appears that he has not complied with the requirements.

Cancellation of registration, with the approval of the Commissioner will take effect from the last day of tax period on which application is made.  A person who ceases to be registered remains responsible for any duties or obligations under the Act while he was registered.

Note: At the time of de registration, the company assets are deemed to be a supply and hence output tax should be declared.

 Income Tax De-registration

A registered person may at any time de-register or cancel registration for income tax purposes, if the company, business or individual no longer exist.

Company or Business De-registration 

A letter has to be made to the Commissioner General (CG) stating reasons for de-registration. Botswana Unified Revenue Service (BURS) will reply the letter to grant permission or deny de-registration. Having been granted permission the Taxpayer will go to Registrar of companies, feel a form and attach a letter from BURS. BURS will then de-register a company or a business after Registrar of Companies has de-registered or striked – off the company from their records.
Note: BURS will only de-register a company or Business when there is no tax liability.

 Individuals De-registration 

A letter has to be made to BURS stating the intention to de-register. This normally happens when an individual no longer earns any income or the individual is deceased. BURS will check the individual compliance and reply the letter to grant or deny permission to de-register depending on the individual’s compliant status. De-registration is only done when the taxpayers compliant status is up to date.