How To Claim VAT In South Africa
15% of the sale price of your goods and services is the VAT charge, often known as output tax. As a result, your clients will pay extra for your goods or services if you are a VAT vendor. However, it also means that all of the goods or services your company provides are eligible for input tax claims.
How are VAT refunds processed?
When SARS receives a correctly submitted VAT return from a vendor, if the seller is eligible to a VAT refund, SARS must pay the refund within 21 business days. SARS must pay interest to the vendor if the refund is not made within this time frame. In certain circumstances, SARS may refuse to issue a refund or extend the 21-business-day grace period before interest is due.
Refunds may be withheld by SARS up until:
The vendor has provided banking information, all pending VAT returns have been submitted, and SARS is certain that any incomplete or incorrect VAT return submitted by a vendor will not affect the amount to be repaid or will be addressed by the vendor.
SARS is confident that a
How can I find out if I’ll receive a tax refund.
You can check the status of your tax return, regardless of whether you owe money or are anticipating a refund, by using the IRS Where’s My Refund service. examining the data on your IRS account. dialing 1-800-829-1040 to speak with the IRS (Waiting periods to speak with a representative could be lengthy.)
What follows a refund claim
Vendors who are chosen to have their refund claims verified will be asked for supporting documentation.
A vendor must give SARS their banking information within 90 days of filing a claim if a refund is due as a result of an incorrect overpayment for the claim to be accepted.
A VAT refund will be offset against any existing debt owed by a vendor, and any remaining balance will be paid to the vendor.
A mistaken overpayment must be reclaimed within 5 years of the date the overpayment occurred, and a VAT refund on a return must be requested within 5 years of the due date for the VAT return.
Which transactions are charged VAT?
Almost all sales of services and imports, as well as the sale, barter, exchange, or leasing of items or properties, are subject to VAT (tangible or intangible). Based on the gross selling price of the products or assets sold, or the gross earnings from the sale of services, the tax is equal to a uniform rate of 12%.
