The problem
Many compliant taxpayers feel that they are mistreated on their Value-Added Tax (VAT) refunds, and for most of them, rightly so. This may be partly due to the perfect storm of a shrinking economy, administrative delays, the current pandemic, and perceived deliberate delays when SARS owes you money.
The most frequent target of excessive requests for verification is VAT refunds. The frustration arising from SARS’s verification process on VAT is well documented and not only aggravates the taxpayer but also endangers the livelihood of the enterprise they operate.
The Ombud also noted this in his release, earlier on in the year that they have found that refunds exceeding the R1.25 million amount, verification and similar mechanisms which result in delay are guaranteed.
The Solution
Tax Consulting South Africa has over 120 full-time professionals including specialist Tax Attorneys, Chartered Accountants and Tax Professionals who provide support on complex matters to taxpayers and their professional advisors. Our expertise and experience as admitted attorneys have allowed us to understand that there is a trend with SARS with regard to how they approach VAT refunds.
As a result thereof, we also understand the most effective way in which to speed up the process and avoid unnecessary delays. Through many engagements with SARS, with which we have assisted many of our high net worth clients, we have developed a strong and effective approach to this ever-growing issue.
