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Vat basics: Two things you must prove to qualify for an extension for a late objection

by , 08 September 2014
If you disagree with a SARS assessment on your Vat affairs and the reasons, you can object.

That's right. You don't have to sit back, grin and bear it if you're unhappy with a decision SARS has made.

You must lodge an objection by filling in the ADR1 objection form and give it to SARS within 30 business days after the date of assessment.

If you miss the 30 business days deadline, you can ask for an extension.

What's the catch?

You must prove the following two things to qualify for an extension for a late objection...


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To qualify for an extension for a late objection, you must prove these two things…


To qualify for an extension for a late objection, you must prove that:

#1: Reasonable grounds exist for the delay if you want an extension of less than 21 business days

According to the Practical Vat Loose Leaf Service, 'reasonable' means:

  • Having sound judgment;
  • Moderate;
  • Ready to listen to reason;
  • Not absurd;
  • Within the limits of reason;
  • Not greatly less or more than might be expected;
  • Tolerable; and
  • Fair.

This means SARS must consider all relevant matters and see if they fit this definition. In the past, the courts have held that there's no absolute standard of reasonableness, it depends on the circumstances of each case.

#2: Exceptional circumstances exist for the delay for an extension of more than 21 business days

What does 'exceptional circumstances' mean?

When the Tax Admin Act refers to 'exceptional circumstances', it means something unusual. For example, there was a fire in your office or the person who had to make the objection passed away.

Well there you have it: SARS will only give you an extension to file a late objection if you meet these two conditions.

Confidential: The 13 Vat secrets SARS doesn't want us to publish

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