During the month of April 2023, SARS detected an abnormal increase in the number of VAT registration applications for individuals. Many of these VAT registration applications were submitted with the intent to defraud SARS by claiming fraudulent VAT refunds. Consequently, SARS conducted an urgent review of the VAT registration process and as a result of the review outcomes, the following changes were implemented with immediate effect:
- All new VAT registration applications for individuals will be subjected to a more stringent registration process. This could include the requirement that the applicant present him or herself, in person, at a SARS branch, to review and validate the information that was disclosed on the VAT registration application.
- The applicant must complete the VAT registration application on the SARS eFiling platform.
- A “Tax Subscription Review Notice” will be issued informing the applicant that the VAT registration application is under review and request supporting documents to be submitted. The applicant may submit the supporting documents via the SARS eFiling platform, the SARS Online Query System, or at a SARS branch.
- The applicant must make an appointment via the SARS e-Booking system, choosing the “VAT Registration Accreditation” option, if that applicant is required to or wishes to visit a SARS branch for an in-person interview. All supporting documents must be available on the day of the appointment.
- If all the required supporting documents are not submitted within 21 business days from the date that SARS requested such documents, or if the applicant does not book an appointment within 21 business days from the date that SARS informed the applicant, the VAT registration application will be rejected. A Notice of Rejection will be issued to the applicant.
While SARS prefers in-person engagements to be with the representative taxpayer, tax practitioners with a Power of Attorney are allowed to represent their clients after the initial legal entity and a tax type application is complete. During the appointment, the tax practitioner must be able to answer all questions relating to the applicant’s enterprise and operations, failing which the VAT registration application will be rejected. This is an existing practice that has not been changed by the VAT registration procedures that were announced on 11 May 2023.
A VAT registration number will only be issued once the VAT registration application is successfully processed and SARS is satisfied that the registration application is valid.
Source: gov.za
