Vat Compliance – CentaTax

VAT Refund Delays? We Can Help.

Nico Grobler — Mon, 13 Jul 2026 10:40:00 +0000

Is Your VAT Refund Delayed? We Can Help.

For many businesses, VAT refunds represent an important source of cash flow. When refunds are delayed or a VAT verification becomes prolonged, the impact can be significant, affecting working capital, growth plans, and day-to-day operations.

We understand that dealing with SARS verification processes and disputes can be frustrating and time-consuming. Whether you are awaiting a VAT refund, responding to a verification request, or challenging an assessment, our VAT specialists are available to assist.

Common VAT Refund Delays - The Challenges Businesses Face

You may benefit from professional assistance if you are experiencing:

Delayed VAT refunds
SARS VAT verifications and audits
Requests for extensive supporting documentation
Penalties and interest imposed by SARS
Rejected VAT refund claims
Objections against SARS assessments
Appeals following unsuccessful objections
Other VAT-related disputes or compliance concerns

How We Can Assist with Your VAT Refund Delays

Our experienced VAT team can help you navigate the complexities of SARS processes by providing:

✅ Assistance with SARS VAT verifications and audits
✅ Support in resolving delayed VAT refunds
✅ Preparation and submission of objections
✅ Management of appeals against SARS decisions
✅ Technical VAT advice and dispute resolution strategies
✅ Liaison and engagement with SARS on your behalf
✅ Review of VAT positions and supporting documentation

Our goal is to help clients resolve VAT matters as efficiently as possible while protecting their rights and ensuring compliance with South African tax legislation.

Complimentary 30-Minute VAT Consultation

If you are experiencing challenges with a VAT refund, verification, objection, appeal, or any other VAT-related dispute with SARS, we invite you to contact us for a complimentary 30-minute consultation.

During this no-obligation discussion, we will:

Understand your specific circumstances
Identify key issues and potential risks
Provide initial guidance on available options
Discuss how we may be able to assist in resolving the matter

Contact us today to schedule your free 30-minute consultation and learn how our VAT specialists can assist you in achieving a successful resolution.

Understanding the Consequences of Non-Compliance with SARS Requests for Relevant Material

Deon le Roux — Mon, 08 Jan 2024 12:59:00 +0000

In a significant move towards strengthening VAT compliance, the South African Revenue Service (SARS) announced in December 2023 its intent to rigorously enforce the provisions of section 95(1)(c) of the Tax Administration Act, 2011 (TAA). This measure targets instances where vendors neglect to submit requested materials, leading to the imposition of estimated assessments.

The Process of SARS Verification and Its Implications

During the verification process, SARS may issue a “Request for relevant material” via e-filing following the submission of the VAT201 return. If a vendor fails to comply with this request within the stipulated 21 business days, SARS is authorized to issue an estimated assessment for the corresponding tax period.

It’s crucial to note that while vendors can apply for a “Request for suspension of payment” alongside compelling arguments to defer such payment, the option to submit a “Request for Correction” against the estimated assessment is unavailable if there is disagreement with SARS’ estimation. Furthermore, SARS maintains that these estimated assessments are not subject to the standard dispute resolution procedures outlined in the TAA.

Responsibilities Following an Estimated Assessment

Upon receiving an estimated assessment notice through e-filing, the vendor is obligated to provide the initially requested material within 40 business days from the assessment date. In cases where compliance within this timeframe is challenging, vendors may submit a “Request for extension” to SARS, outlining the valid reasons for delay.

The Risks of Non-Compliance: Penalties and Interest

Non-compliance carries financial implications; administrative penalties and interest are levied when VAT is owed to SARS. Therefore, maintaining rigorous VAT compliance and promptly responding to SARS’ requests is essential to avoid the risk of estimated assessments.

Professional Assistance for Compliance

For businesses seeking to ensure full compliance and effective handling of verification requests, CentaTax offers expert services. Our team is dedicated to assisting your business in meeting all SARS requirements efficiently and on time, safeguarding against the complications of non-compliance.

Another Pillar of VAT Compliance

Claudia Steyn — Thu, 06 May 2021 16:17:00 +0000

After ensuring that your ERP has been set up correctly, to capture and control the end-to-end VAT accounting processes, the second step in VAT compliance is to ensure that the business complies with the documentary requirements of the VAT law. This is the basis upon which the business will ensure that VAT has been accounted for correctly in the relevant tax periods.

It is crucial to understand that the documentary requirements have a direct impact on VAT Reporting as this is the basis upon which a transaction is assessed by the Taxpayer to determine the correct VAT treatment. Documents which are not compliant with tax law may result in substantial penalties and/or understatement penalties.

To ensure compliance with documentary requirements, Taxpayers must stay abreast of constantly changing legislation and follow any changes in SARS’s interpretations, guidelines, and other media releases which has a direct impact on a business’s VAT compliance. It is advisable to ensure that monthly compliance reviews and sample testing of documents are performed.

Taxpayers must also keep a record of all relevant documentary proof as well as any other relevant records of transactions for at least five years. Failure to comply can lead to substantial penalties and interest.

Effective ERP implementations together with regular documentary reviews will ensure VAT compliance and will lead to hassle-free audit processes should the Taxpayer be selected by SARS for audits/verifications. This will also expedite VAT refunds due from SARS.

The first pillar of VAT Compliance lies within the electronic set-up of your Enterprise

Claudia Steyn — Tue, 20 Oct 2020 14:51:00 +0000

With the outbreak of COVID-19 businesses are now more than ever dependant on the digitalisation of its practices and workforce.

It is therefore vital for vendors to understand the risks that are inherent to all transactional processes and operations within their global ERP systems designs and accounting processes and to develop a coherent VAT strategy to address and manage these risks proactively.

Inaccurate VAT law interpretation and inherent ERP system weaknesses can result in material overpayments or underpayments of VAT which can lead to a financial loss, additional assessments, penalties and reputational risk. SARS is also empowered to raise retrospective assessments which means that they can go back as far as they deem necessary in certain instances.

Unless there are adequate measures in place to capture and control the end-to-end VAT accounting process, the result will be an inefficient risk management strategy which will ultimately result in a financial loss. By contrast, an enhanced tax risk management model should involve periodic testing of controls to guarantee the efficiency of the VAT processes.

Monthly VAT Compliance reviews are crucial to ensure transactions are being accounted for correctly in terms of current legislation and sample testing should be performed to ensure that documentary requirements are met. Non-compliance can lead to substantial penalties and interest.

It is also advisable for Corporates to perform an annual VAT Risk Review to optimise the efficiency with which VAT is dealt with in your financial accounting system.