- SARS’ BGR 16 (Issue 3) makes the standard turnover-based method the default for VAT apportionment from 1 January 2024 for affected financial years.
- Vendors using this method must do an annual true-up adjustment to align estimated and actual apportionment ratios.
- The adjustment must be declared within nine months after year-end; late compliance may trigger penalties and interest.
- Vendors must also annually report their updated VAT apportionment ratio to SARS.
- Failure to report the ratio is a criminal offence, making compliance critical.
Source: cliffedekkerhofmeyr.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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