Have you submitted your Vat return? Stick to these six duties to get your refund on time
Vat refunds play an important part to ease the cash flows in your business. So make sure you stick to these six duties to help ensure you get your refund on time.
Want SARS to pay your Vat refund on time so you can put money back into your company's pocket?
Make sure you stick to these duties.
Revealed: Your six duties once you've submitted your Vat return to SARS
Keep all relevant invoices and other documents on hand in case SARS contacts you for an audit.
Make sure all your other taxes are up to date and you owe nothing to SARS.
If you owe SARS money, SARS will use your refund to settle the other taxes, penalties and interest.
If you're due a refund, SARS must pay it over within 21 business days, that includes their audit time. Start counting this from the day you submit your Vat return. Make sure you're available for SARS within those 21 business days, says the Practical Vat Loose Leaf Service.
When the 21 business days are up, check your bank statement or your eFiling work page. If SARS hasn't paid your refund over yet, it must pay you interest on it.
The interest is calculated per day after the 21st day of business following submission of your return, based on the official rate at that time.
Remember, if SARS wants to audit your documents when a refund is due to you, it must do so within 21 business days. If not, you must insist on the interest.
How your refund will be paid is also important.
SARS only issues payments and refunds by direct, automatic electronic transfer to your bank account.
So make sure SARS has your full and correct bank details so it can facilitate smooth and uninterrupted refunds.
SARS won't pay interest on late refunds where the refund was late because you failed to submit your bank details. It's your responsibility to provide SARS with the necessary information to refund you.
Knowing what your duties are when you've submitted your Vat return will help ensure SARS pays your refund on time.