25. SARS VAT Vendors Guide.pdf

This means that sars cannot reassess that is raising

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This means that SARS cannot reassess (that is raising an additional or reduced assessment) if the practice generally prevailing is altered subsequent to the assessment. The practice generally prevailing at the time of assessment, applies. The TA Act also deals with the situation in which a practice generally prevailing no longer applies. For example, a legislative amendment or judgment handed down on a matter may have a material effect on the extent to which SARS can justify the continuation of that practice. In response, SARS must decide whether the practice has become obsolete or unnecessary, or that it should be changed in favour of a different practice. However, should SARS appeal a judgment which materially changes a practice generally prevailing, that practice will remain valid and applicable until the final outcome of the appeal. 16.4 Registration Chapter 3 of the TA Act regulates the registration of vendors. The management of vendor registration involves three basic functions: the creation of a registration for a vendor, updating vendor details and the deregistration of vendors from SARS’s records. To encourage compliance with registration obligations, the TA Act seeks to provide a clear and comprehensive description of registration requirements. SARS further seeks to make the procedural requirements for registration as easy as possible. As part of modernisation initiatives, SARS implemented the single registration process for all tax types which came into effect on 12 May 2014. A change to the address, banking account, or representative (after registration) must be communicated to SARS within 21 business days of the change. See Chapter 2 for more information in this regard. SARS will also take measures to ensure completeness of vendor registrations, that is, to ensure that vendors who fail to register or provide adequate information are detected. 16.5 Record-keeping The TA Act 177 imposes a duty on a person to retain the records, books of account or documents needed to comply with a tax Act. Vendors are also required to keep additional specific records under section 55 of the VAT Act. The duty to retain records does not only rest on vendors who are registered and who have filed a return, but is extended to include those who ought to, but have not filed a return, and 177 Section 30 of the TA Act. 138
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VAT 404 – Guide for Vendors Chapter 16 those who would have been obliged to file a return if not for an exemption or threshold. Failure or neglect to retain proper records as required under the TA Act is a criminal offence 178 and may trigger administrative non-compliance penalties under Chapter 15 of the TA Act. See Chapter 13 for more information on the electronic retention of records and to the Short Guide on the Tax Administration Act, 2011 for more information on record-keeping and the relevant periods applicable.
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