New VAT Enhancements: Understanding Estimated Assessments for Vendors
In recent updates as of December 11, 2023, significant improvements have been made to the VAT assessment process, particularly in the realm of estimated assessments for vendors. This enhancement, now integrated into VAT procedures, pertains to instances where a vendor fails to furnish the necessary materials requested by SARS during the VAT verification process. In such cases, SARS reserves the right to raise an estimated assessment under section 95(1)(c) of the Tax Administration Act.
Here are key points to note regarding estimated assessments:
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Details and Notifications:
Vendors will find the specifics of the estimated assessment outlined in the VAT217 notice issued by SARS.
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Correction Requests:
SARS won’t entertain Requests for Correction if an estimated assessment for VAT has been raised within the same period.
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Disagreement with Assessment:
Should a vendor disagree with the estimated assessment, they must submit the required relevant materials within 40 business days from the issuance of the VAT217 notice.
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Submission Channels:
Vendors have multiple avenues to submit outstanding relevant materials: through eFiling, at a SARS branch, or via the SARS Online Query System (SOQS).
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Extension Requests:
If, for any reason, the relevant materials cannot be submitted within the stipulated 40 business days, vendors can request an extension.
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Extended Timeline:
Upon approval of the extension, vendors will have the extended period or a maximum of five (5) years plus 40 business days from the initial deadline to submit the required materials.
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Payment Suspension Requests:
Vendors facing an amount payable due to the estimated assessment indicated in the VAT217 notice can submit a Request for Suspension of Payment.
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Dispute Resolution:
It’s crucial to note that estimated assessments issued under section 95(1)(c) are not subject to dispute through a Notice of Objection (NOO).
These enhancements aim to streamline the assessment process while ensuring compliance. Vendors are encouraged to adhere to the specified timelines and procedures to mitigate any potential discrepancies in their VAT assessments.
That’s why we are here to assist you in the new process and get you VAT-ready.
Reach out to us today for assistance.
For more information: https://www.sars.gov.za/latest-news/vat-enhancements-for-estimated-assessments/
