VAT – 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.

Changes to SARS VAT Verification Letters

Ruan Jansen van Vuuren — Tue, 17 Jun 2025 10:35:56 +0000

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.

VAT Changes Checklist 2025

Deon le Roux — Fri, 28 Mar 2025 13:21:05 +0000

The 2025 Budget Speech announced phased VAT rate increases in South Africa, with VAT rising from 15% to 15.5% on 1 May 2025 and to 16% on 1 April 2026. Additionally, certain food products will now be zero-rated. These changes require businesses to review their compliance measures, update systems, and ensure seamless transition in line with SARS regulations.

To assist you in navigating these changes, CentaTax has developed a VAT Change Checklist—a practical guide to help you assess key areas of focus for compliance and operational readiness.

Beyond this, our team is ready to assist with:

Comprehensive compliance reviews;
System audits & updates;
Contract evaluations; and
Staff training tailored to your business needs

By completing the checklist, you’ll gain insights into your preparedness, and we can work with you to address any potential gaps.

To access the VAT Change Checklist kindly request a copy by e-mail to info@centatax.com.

Proposed VAT rate increases from 15% to 15.5% on 1 May 2025 and to 16% on 1 April 2026

Deon le Roux — Wed, 12 Mar 2025 12:39:00 +0000

It is proposed that the VAT rate will increase from 15% to 15.5% effective 1 May 2025. A further increase in the VAT rate from 15.5% to 16% will be effective on 1 April 2026.

In line with the proposed VAT rate increase, Government proposed to extend the list of zero-rated basic foods effective 1 May 2025, to include edible offal of sheep, poultry, goats, swine and certain cuts as heads, feet, bones and tongues of bovine animals; specific, as well as dairy liquid blend, tinned or canned vegetables.

It is important for vendors to consider the following, which will have an additional financial and compliance burden:

Pre-increase contractual arrangements and agreements with clients, suppliers and agents which must be amended;
Changes required to ERP systems, point of sale systems, in-store and electronic advertising, website updates, pricing adjustment, changes to tax invoices and credit notes and implementation of new ERP tax codes;
Pre-increase ERP test phases to ensure accurate implementation;
Ensuring compliance where VAT returns are bi-monthly and such tax period includes the old and increased VAT rate;
The factoring in of the VAT rate increase in determining annual apportionment ratio adjustments;
The correct VAT application of discounts, rebates and bad debt in respect of transactions prior to the effective rate change date; and
Application of the VAT transitional rules on the time of supply pertaining to goods and services supplied, with regards to pre- and post VAT rate change. In particular the treatment of transactions in respect of rental agreements, periodic or progressive supply of goods or service, and the sale of fixed property and construction contracts.

Non-compliance or incorrect implementation may result in penalties and interest imposed by SARS.

Other notable VAT proposals

Value-added tax Debit and credit notes relating to a going concern as per section 8(25) of the VAT Act for returned goods or services to the transferee under section 42 or 45 of the ITA;
Widening the intermediary provisions in respect of “electronic services” to include supplies facilitated on behalf of local suppliers;
Reviewing VAT rules dealing with documentary requirements for silver exports;
Updating the wording of regulation 8(2)(e)(ii) of the Export Regulations;
Amendment to section 11(2)(l) of the VAT Act in respect of medical trials conducted in South Africa by non-residents;
Updating the regulations on the domestic reverse charge mechanism relating to valuable metal;
Reviewing the definition of “insurance” In light of the Capitec Bank court case;
Clarifying the VAT treatment of temporary letting of residential properties; and
Reviewing the VAT treatment of airtime vouchers supplied in South Africa for exclusive use in an export country.

Please contact us should you require our assistance with any of the above items or require advisory service in respect of the VAT compliance requirements.

Implications of a VAT rate increase for vendors

Deon le Roux — Fri, 28 Feb 2025 12:45:00 +0000

The uncertainty surrounding a potential VAT rate increase in 2025 presents significant challenges for both consumers and VAT-registered vendors. A smooth transition from the current VAT rate to an increased rate requires sufficient preparation, yet governments often approve such increases with less than six months’ notice. This limited timeframe makes it difficult for businesses to adjust their administrative, financial, and compliance processes effectively.

Key Considerations for Vendors

To minimize disruption and ensure compliance, VAT-registered businesses should proactively address the following areas:

Contractual Agreements: Review and amend existing contracts with clients, suppliers, and agents to account for the VAT increase.
System & Pricing Adjustments: Update ERP systems, point-of-sale systems, electronic and in-store pricing, advertising materials, tax invoices, and credit notes to reflect the new VAT rate.
Testing & Implementation: Conduct pre-increase ERP test phases to ensure seamless integration and accurate VAT calculations.
VAT Return Compliance: For businesses submitting bi-monthly VAT returns, ensure accurate reporting when a tax period includes both the old and new VAT rates.
Annual Apportionment Adjustments: Factor in the new VAT rate when determining apportionment ratios for annual tax adjustments.
Treatment of Discounts & Rebates: Apply the correct VAT rate for discounts, rebates, and bad debts related to transactions before the VAT increase takes effect.
Transitional VAT Rules: Carefully manage the time of supply for goods and services provided before and after the rate change, particularly for:

Rental agreements
Periodic or progressive supply contracts
Fixed property sales and construction contracts
Avoid Non-Compliance & Penalties

Failure to implement the VAT rate change correctly could lead to penalties and interest imposed by SARS. Ensuring a compliant transition is critical to avoiding unnecessary financial and operational risks.

If you need assistance with VAT compliance, system adjustments, or advisory services, our team is ready to help. Contact us today to ensure your business is prepared for any potential VAT changes.

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.