When your input tax exceeds your output tax, you're due a VAT refund.
And if this is the case for you, avoid any complications along the way and follow these 10 useful tips to get your VAT refunds quickly, and easily, from SARS:
Use eFiling, as your return is captured straight away.
If you submit manual returns, SARS can take up to 14 days to capture them, and this can seriously delay the process.
Instead of waiting until the 25th
of the month to file your VAT refund
claim, do it as soon as possible, after the end of your tax period.
Whatever you do, DON'T make any mistakes on the return.
If you do, SARS will delay your refund. You'll also have many troubles while trying to correct the mistakes.
If you claim input tax, your SARS VAT audit is impending
And when the SARS auditor comes knocking or sends a query, he'll check if:
· Your books and records comply with the requirements of Section 55 of the VAT Act;
· You didn't claim on exempt supplies;
· Any of your claims were for non-taxable supplies;
· You apportioned inputs correctly and at the right tax rate (Sections 16, 17 and 20
of the VAT Act);
· And more!
But the truth is, even if you're entitled to your claim, but don't have the valid documentation, he'll still reverse your deduction!
Here's everything you need to secure every input tax claim you submit.
Make sure you've submitted all of your VAT returns, because SARS won't pay any refunds if you have any outstanding returns.
Ensure that your returns for all other taxes are up-to-date. This includes PAYE, SDL, Customs, UIF etc.
If any of these refunds are outstanding, you won't receive your VAT refund.
Make sure that SARS has your correct contact details.
In other words, they must have your correct email address, phone number etc. so that they may contact you.
Ensure that SARS has your correct banking details, because if they don't, your VAT refund will bounce, after which it'll stay with SARS until you can provide proof of your correct banking details. And this process can take up to a year!
If you don't receive your refund within 21 business days of submitting your return, follow up with your local SARS office, or look at the 'refund dashboard'
link located on your eFiling profile.
*To learn the other 2 tips, click here…