SARS Increases VAT Estimated Assessments Due to Enhanced Tax Collection Efforts

• SARS has implemented estimated assessment functionality for VAT cases when vendors do not provide requested material.
• There has been a significant increase in VAT estimated assessments issued by SARS.
• Vendors need to understand procedures for responding to estimated assessments and maintain proper VAT records.
• Estimated assessments are based on estimates as per section 95 of the Tax Administration Act No. 28 of 2011.
• SARS can issue various types of assessments, including estimated assessments, if returns are not submitted or contain incorrect information.
• Estimated assessments are issued as VAT217 notices and require vendors to provide outstanding information.
• Vendors cannot request corrections for VAT returns in periods with estimated assessments.
• Vendors may request suspension of payment obligations until issues are resolved.
• SARS must provide reasons for the assessment upon request.
• Estimated assessments are subject to objection and appeal only if SARS does not make a reduced or additional assessment after receiving the return or relevant material.
• Vendors can request SARS to adjust estimated assessments before they become final.

Source: taxathand.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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