25. SARS VAT Vendors Guide.pdf

1651 unannounced inspections sars officials are

Info icon This preview shows pages 150–151. Sign up to view the full content.

16.5.1 Unannounced inspections SARS officials are empowered in terms of the TA Act to conduct an inspection at a vendor’s place of business without prior notice. The object of these unannounced inspections is to determine whether a vendor is registered for tax purposes, to ascertain if the vendor keeps records as required, or to determine the identity of the person occupying the premises. This type of inspection can only be conducted in instances where a SARS official has a reasonable belief that a trade or enterprise is carried on the premises to be inspected. These SARS officials are not allowed to enter any domestic premises or dwelling which is not used for purposes of carrying on a trade or enterprise. Further, all SARS officials involved in the administration of a tax Act must be issued with an identity card which he or she must produce when required to do so by a member of the public. This card is used to, when requested, demonstrate the authority of a SARS official to perform functions or duties. This ensures that SARS officials are not impersonated and that the public is satisfied that they are dealing with a SARS official and know the identity of that official. 16.6 Verifications and audits Verifications The process of verification is a less intensive process than an audit although it entails the evaluation of the accuracy of the vendor’s records. Records that might be used to verify the details on a return include the supporting documents relating to the input tax deductions made or output tax declared, or any other records or documents which may be relevant in the circumstances (including information from third parties). SARS officials trained in VAT will conduct the verification. You will be notified of the request to submit supporting documents within a short period after submitting the actual return. The requested documents should be submitted to SARS in a manner specified in the request. The supporting documents are usually requested to be uploaded via the eFiling channel, by post or by delivery at the nearest SARS office. You may select the format accessible to you to submit the documents from the aforementioned options. The scope of the verification is generally limited to a single VAT period and will probably be the latest period. What is an audit? An audit is generally a detailed check on the correctness of VAT returns submitted and payments made by you. It will normally involve an examination of multiple periods, and relevant materials may be obtained from third parties as well as from the vendor. A SARS official will contact you as and when an audit needs to be conducted and a notification of the intention to conduct an audit will be issued. An audit is conducted based on the risk profile of 178 Section 234( e ) of the TA Act.
Image of page 150

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 151
This is the end of the preview. Sign up to access the rest of the document.
  • Fall '17
  • E.H

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern