25. SARS VAT Vendors Guide.pdf

Should your return result in an amount to be refunded

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Should your return result in an amount to be refunded, SARS should refund you within 21 business days. Should the refund not be made within this time, interest at the prescribed rate is payable to you. However, the 21 business days interest-free period can in certain instances be extended where the return is incomplete or defective in any material respect, and information is necessary to enable the Commissioner to make a proper assessment of the amount properly refundable. Refunds will only be paid out to you if you do not owe any amounts of other taxes administered by the Commissioner. In such cases, debt equalisation will be applied to offset the amounts owing in respect of other taxes, and the balance (if any) will be refunded. For more information on refunds and interest on refunds under the Tax Administration Act, see the SARS website . In order to reduce the risk of VAT fraud, SARS makes use of a sophisticated risk engine that applies objective risk criteria, including third party data to identify high risk VAT refund claims for further investigation and audit each month. The payment of an undue refund by SARS to a vendor is regarded as an outstanding tax debt due by the vendor from the date on which the refund amount was paid. Interest accrues and is payable by the vendor on the amount not properly payable to the vendor, from the date of payment of such amount by SARS. 108 You can make use of the Refund Dashboard which is a function that will enable you to view the reasons why your refunds may not have been paid out and what actions may be required of you. Only the status of refunds from March 2011 will be displayed on the Refund Dashboard. This function is available on eFiling for registered eFilers. Vendors who call the 106 Section 190(1) of the Tax Administration Act. 107 Section 44(3)( c ) read with Chapter 13 of the Tax Administration Act. 108 Section 190(5) of the Tax Administration Act. 86
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VAT 404 – Guide for Vendors Chapter 10 Contact Centre or go to a SARS branch to request information will be assisted by SARS agents who have access to the dashboard. A decision not to authorise a refund is subject to objection and appeal. See the Short Guide on the Tax Administration Act, 2011 for more information on refunds. 10.8 Change of bank details Only non-resident companies and resident companies that are part of the same group structure may request that VAT refunds be paid into a bank account of a nominated person. In the case of a “subsidiary company” or “holding company” as contemplated in the Companies Act, VAT refunds may be paid into the bank account of either the subsidiary company or holding company, on condition that SARS is indemnified against any loss which may occur. Due to concerns involving VAT refund fraud, the use of third party bank accounts will not be permitted in any other cases.
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