Dear Funda Family
As you’ve noticed, there has been quite the delay by SARS to finalise VAT verifications and where applicable the corresponding VAT refund pay-outs.
In the most recent SAIT newsletter (South African Institute of Taxation), it was highlighted again that these delays are experienced nationally, and that SAIT has been receiving constant escalations and complaints regarding this matter.
SARS has quarterly meetings with institutions like SAIT, and in one of such recent meetings, “it was noted in the case of VAT refund verifications that the auditors who were assisting nationally are now concentrating on the regional cases. The current inventory age analysis is between 30 and 60 days.”
This suggests that SARS has realised the backlog and it seems they are finally allocating auditors to tackle these matters and more specifically, the VAT verifications. However, this will still take time and we do ask for your ongoing patience during this process.
From our end, we value you as our clients and endeavour to follow the process as set out by SARS for VAT verifications which are not finalised within the prescribed 21 business days:
- Follow up with SARS on the verification only once the 21 business days have passed and escalate the matter at the SARS contact centre.
- If still not resolved after 10 working days, to submit a complaint via SARS e-filing, which has then a turnaround time of 21 working days to be resolved.
- As a last resort we can do a submission to the Tax Ombud, however this is the last resort if all above options have been exhausted. Please kindly note that an additional charge will be applicable should it result in the submission to the Tax Ombud.
Please also take note that the contact centre has been experiencing high call volumes, and SARS as well as SAIT has been asking tax practitioners not to place unnecessary calls. As stipulated, these may include phone calls such as following up on matters which are still in their respective turnaround times.
We want to ensure you that FundaMali will continue to provide the best, high-quality service to you and thus we strive to keep you updated on the latest tax matters. Thank you for your understanding and your patience in this regard.If you have any questions or concerns, please contact us on 010-594-9477, or WhatsApp us on 060-550-0263 alternatively please feel free to email us at hello@fundamali.com.
