Ruan Jansen van Vuuren – CentaTax https://centatax.com Tax Simplified Wed, 15 Apr 2026 12:59:04 +0000 en-ZA hourly 1 https://wordpress.org/?v=7.1.2 https://centatax.com/wp-content/uploads/2025/11/cropped-favicon-32x32.png Ruan Jansen van Vuuren – CentaTax https://centatax.com 32 32 Changes to SARS VAT Verification Letters https://centatax.com/blog/changes-to-sars-vat-verification-letters/ Tue, 17 Jun 2025 10:35:56 +0000 http://dummy.xtemos.com/woodmart2/elementor/?p=447

SARS has recently implemented notable changes in its approach to Value-Added Tax (VAT) verifications, indicating a more focused and detailed methodology.

Historically, SARS' VAT verification letters were typically automated notifications indicating a taxpayer’s selection for verification, accompanied by a standard information request, usually including input and output schedules, the top five input and output tax invoices, and a reason for the refund claimed. These engagements were largely generic and did not specifically relate to the details disclosed on the VAT201 return. Consequently, they often led to delays, as the information provided by taxpayers frequently fell short of SARS’ requirements, necessitating further requests and ultimately delaying the processing of refunds.

In contrast, the current verification approach adopted by SARS places increased emphasis on the specific data submitted on the VAT201 return. This has resulted in more comprehensive and tailored requests. While the traditional requests for output and input tax schedules and high-value invoices remain, SARS now often requires additional supporting documentation. This may include:

  • Evidence for zero-rated supplies (especially exports),
  • Documentation for VAT on imports,
  • Details on exempt supplies,
  • Explanations for credit notes or VAT201 adjustments,
  • Trial balances,
  • Bank statements,
  • Capital asset purchase documentation,
  • Reverse charge applications, and
  • Industry-specific data relevant to the taxpayer's operations.

For businesses involved in the export of goods, SARS now mandates detailed disclosures such as the names and contact details of recipients abroad, in line with Interpretation Notes 30 and 31, as well as the provision of corresponding export documentation.

Taxpayers procuring services from foreign suppliers—especially electronic services—must now submit a list detailing all such services received from offshore entities. In cases where exempt supplies are reflected on the VAT201, SARS expects a clear rationale for the non-application of input tax apportionment rules.

These enhanced verification procedures underscore the importance of meticulous record-keeping and proactive compliance. Taxpayers are encouraged to remain informed and to approach VAT verifications with thorough preparation.

Should you require support in navigating these evolving requirements, we invite you to contact our VAT specialists for professional assistance.

]]> SARS Tax Collection Via Third Party Appointments https://centatax.com/blog/sars-tax-collection-via-third-party-appointments/ Thu, 22 Apr 2021 15:09:00 +0000 https://centatax.com/?p=30019

As Taxpayers are still grappling with the consequences of covid-19, SARS is under tremendous pressure from Government to collect tax.

SARS applies various methods to increase its collections and one such method is by appointing third parties to collect on its behalf. Section 179 of the Tax Administration Act, 2011 (TAA) empowers SARS to collect outstanding tax debts via third-party appointments such as banks, employers, pension funds, or any other person who holds or owes any money to such Taxpayer.

Tax collection through third-party appointments may result in serious difficulties for Taxpayers if they are unaware of such appointments i.e. No funds left in the bank account to pay employees and/or operational costs which may result in serious financial hardship and loss of business. As a result, the TAA makes provision to protect the rights of the Taxpayer by requiring SARS to follow certain steps prior to appointing a third party:

  • A letter of demand must be delivered to the taxpayer at least 10 days before issuing a notice to third parties who hold monies for and on behalf of the taxpayer concerned (Physically or electronically);
  • The letter of demand delivered to the taxpayer must set out the recovery steps to be taken should the tax debt not be paid; and
  • The letter of demand must also specify the relief mechanisms available to the Taxpayer.

It is therefore imperative for Taxpayers to ensure it has received the final demand letters either physically, to its postal address, or electronically via the taxpayers' SARS E - filing profile, should it find itself to receive such notice from a third party and/or realize that the funds are no longer available.

Seeing that such appointments for collection of debt can result in serious financial hardship, it is advisable for the appointed third party to request proof from SARS that a final demand letter was provided to the Taxpayer before collecting the taxes as it often happens that the Taxpayer did not receive such notices or the debt is subject to a dispute and a request for suspension of debt was submitted to SARS which does not reflect on its system.

More importantly, Taxpayers must ensure that their registered details are regularly updated on SARS E-filing to receive communications from SARS. This can be done by updating the RAV01 form on its SARS E - Filing profile. Immediate action is then required by the Taxpayer to follow the correct procedures in terms of the TAA to ensure that third parties do not unjustifiably pay money to SARS.

CentaTax can assist Taxpayers to ensure that contact details are updated with SARS and help where such debts are in dispute.

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SARS sets out the guidelines: Sars.gov.za

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