S.L. 406.21 Art. 12Termination of Group membership.

(1) Where a member of a VAT Group no longer satisfies or shall no longer satisfy any one or more of the conditions set out in regulation 3(1)(b), the Group Reporting Entity shall, prior to the lapse of fifteen days from the date of change in circumstances, notify the Commissioner of the change or the intended change, as the case may be. The Commissioner shall, once satisfied that any one or more of the required conditions are or shall no longer be satisfied, terminate that person’s membership of a VAT Group, and shall serve notice on that person indicating the effective date of the termination of membership.

(2) Where it appears to the Commissioner that a member of a VAT Group no longer satisfies any one or more of the conditions set out in regulation 3(1)(b), the Commissioner shall, unless satisfactory evidence to the contrary is provided, terminate that person’s membership of a VAT Group, and shall serve notice on that person indicating the effective date of the termination of membership.

(3) The date of termination of a person’s membership of the VAT Group pursuant to sub-regulations (1) or (2) shall not be a date earlier than the date on which that person ceased to satisfy the requirements of regulation 3(1)(b).

(4) Where the membership of a VAT Group of the Group Reporting Entity is terminated, the remaining members shall immediately appoint from amongst themselves a new Group Reporting Entity, which shall notify the Commissioner in writing within fifteen days from the date of the notification received pursuant to sub-regulations (1) or (2):

Provided that, in such circumstances, the Commissioner may, at any time and as he shall deem fit, designate in lieu of the person so appointed, any other member of the VAT Group as the Group Reporting Entity.

(5) The cancellation of a person’s membership of a VAT Group shall not relieve that person from any liability incurred under the Act in virtue of anything done or omitted to be done before the date of the cancellation, or from the obligation of that person to make an application for a fresh registration in any of the circumstances under which a person is required to apply for registration in terms of any provision of the Act:

Provided that, where the person whose membership of a VAT Group is cancelled as aforesaid is not liable to make an application for registration under article 10 of the Act, the provisions of item 14 of the Second Schedule to the Act shall apply in respect of any goods belonging to that person, where the value added tax on those goods had been wholly or partially deducted.

(6) The members of a VAT Group may apply to the Commissioner to dissolve and cancel the registration of the VAT Group at any time after the lapse of twenty-four full calendar months from the effective date of registration of the VAT Group, and a VAT Group cannot subsequently be reconstituted with the same membership until the lapse of twenty-four full calendar months from the effective date of the cancellation thereof.

(7) When the registration of a VAT Group is cancelled pursuant to sub-regulation (6), the Commissioner shall serve notice on the Group Reporting Entity indicating the effective date of cancellation of the registration:

Provided that the cancellation of registration of a VAT Group shall not relieve the persons who were members of the VAT Group prior to the said date of cancellation from any liability incurred under the Act in virtue of anything done or omitted to be done before the date of the cancellation, nor from the obligation to make an application for a fresh registration in any of the circumstances under which a person is required to apply for registration in terms of any provision of the Act:

Provided further that where a person who was a member of the VAT Group prior to the said date of cancellation of its registration is not liable to make an application for registration under article 10 of the Act, the provisions of item 14 of the Second Schedule of the Act shall apply in respect of any goods belonging to that person, where the value added tax on those goods had been wholly or partially deducted.