25. SARS VAT Vendors Guide.pdf

173 some examples of these issues are as follows sars

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173 Some examples of these issues are as follows: SARS is requested to rule on the substance of a transaction and disregard the form. Transactions which in the opinion of the Commissioner could be subject to any specific or general anti-avoidance provisions in any of the acts administered by SARS. 15.4 Different types of rulings 15.4.1 Chapter 7 of the Tax Administration Act: Advance rulings General –This Chapter deals with the provisions governing the issuing of advance rulings which are categorised as BGRs, BPRs, BCRs and non-binding private opinions. Making application All applications for advance rulings must be filed using the ATR service available via the SARS eFiling system which may be accessed on the SARS website or . Advance tax rulings can only be made in respect of proposed transactions. Issuance of final ruling letter – BPRs may only be issued by the ATR section of the SARS Legal and Policy Division. Publication of rulings – In terms of the TA Act, all BPRs must be published by the Commissioner for general information purposes. However, the Commissioner is not obliged to publish a ruling where it is essentially the same as a ruling that has already been published. The letter is published in a form that does not reveal the identity of the applicant or the other parties to the proposed transaction. Effect – Under the TA Act, a BPR may have a “binding effect” upon the Commissioner, subject to certain requirements and limitations. A written statement can only be binding if it contains a statement identifying it as such in accordance with section 78(5)( a ) of the TA Act. 173 SARS will issue advance rulings and VAT rulings only to compliant taxpayers. This means that the tax affairs of applicants for all taxes administered by the Commissioner must be in order before SARS will accept an application and issue a VAT ruling or advance ruling. 133
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VAT 404 – Guide for Vendors Chapter 15 Further details can be found under the Advance Tax Rulings page on the SARS website which contains various documents concerning ATR matters including, amongst others, the following: Comprehensive Guide to Advance Tax Rulings ATR Process – Step by step Example of a Binding Ruling Application Published Binding Rulings Public Notice 748 15.4.2 Section 41B read with Chapter 7 of the Tax Administration Act: Value-Added Tax rulings and Value-Added Tax class rulings General – Section 41B of the VAT Act provides, in addition to advance rulings under the ATR legislation, a legislative framework for the Commissioner to continue issuing binding VAT class rulings and VAT rulings as defined in that section. For VAT class rulings and VAT rulings, the applicant is not required to pay a fee as required under ATR. The Minister may, however, issue regulations in terms of which certain ruling applications will only be considered under the ATR provisions. Public Notice 748, as well as the exclusions, refusals
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