Taxpayer’s Right to Object to SARS-Approved VAT Apportionment Method Confirmed by SCA

• The SCA dismissed SARS appeal against African Bank regarding the Tax Court’s jurisdiction to hear VAT apportionment method disputes
• African Bank requested SARS approve a specific transaction based VAT apportionment method but SARS issued a substantially different ruling instead
• African Bank objected to the alternative method and appealed to the Tax Court when the objection was disallowed
• SARS argued the Tax Court lacked jurisdiction because approving an alternative method did not constitute a refusal under the VAT Act
• The central issue was whether approving an alternate apportionment method instead of the requested one constitutes a refusal that can be objected to and appealed

Source: sars.gov.za

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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