SARS suspicious of spike VAT registrations

The South African Revenue Services (SARS), has implemented stricter measures in terms of VAT registrations, after it noted a spike in suspicious registrations by VAT vendors.

VAT VENDORS SCRUTINISED

The sudden and suspicious spike in registration in April raised eyebrows with SARS, which called for them to review its registration process. In statement, SARS said that ‘large numbers of these registrations are being created with the intent to defraud SARS and, by implication, honest taxpayers.’

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Changes SARS will impose on VAT registrations:

• All new applications for VAT registration will be subjected to a more stringent registration process which could include the requirement that the applicant present themselves, in person, to the branch closest to where the business enterprise is located for validation and accreditation.
• Where applicants are expected to visit a branch, the visit must be pre-booked on the SARS website, by clicking on the “Book an Appointment” icon.
• All supporting documents that are required for registration validation must be submitted at the branch on the day of the appointment.
• VAT registration will only be effected when SARS has satisfied itself that the application is lawful

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In the 2022/23 financial year, SARS paid out a record R381bn in refunds, of which R319bn were VAT refunds.

SARS ISSUES WARNING

Commissioner Edward Kieswetter has issued a stern warning against the perpetrators, reiterating their resolve to pursue criminal charges against these perpetrators.

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“SARS is augmenting its human effort using data insights, artificial intelligence and machine learning algorithms to enhance its capability to identify those engaged in criminal activity. Those who underestimate our resolve, do so at their own peril. Furthermore, I wish to apologise to honest taxpayers for the inconvenience that this may cause”, says Kieswetter.

Despite the attempts to defraud SARS, it says its is committed to paying legitimate refunds to qualifying taxpayers as and when they become due.

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“SARS is a critical institution in nation building and strengthening our democracy by discharging its responsibility of collecting revenue, improving compliance, and facilitating legitimate trade to help build a capable state. SARS carries out this mandate without fear, favour or prejudice.”, added Kieswetter.

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