What happens after you submit your Vat refund return?
Let's say you discover your input tax exceeds your output tax and you realise, a refund is due to you! You then submit your Vat refund return to SARS. Now the big question is: What happens once you've submitted your Vat refund return? Read on to find out...
Vat refunds play an important part in easing the cashflows of your business.
That's why you must use every allowable input tax deduction you're entitled to, to maximise your refunds and claim back every legal cent you can.
So what happens once you've submitted your Vat refund return?
Once you submit your Vat refund return, the following happens:
SARS captures it on its system; and
SARS screens the refund to determine whether an audit is necessary. If it is, the SARS auditor will contact you to make arrangements to conduct the audit, says the Practical Vat Loose Leaf Service.
You also have to do certain things once you've submitted your return.
Your duties are as follows:
Make sure you're available in case SARS phones.
Keep all the relevant invoices and other documents on hand in case SARS phones for an audit.
Make sure all your other taxes are up to date and you owe nothing to SARS.
Count your 21 business days to keep an eye on SARS! Start counting from the day you submit your Vat return. Remember that SARS must pay you with 21 days.
When your 21 business days are up, check your bank statement! If SARS hasn't paid you your refund, they must pay you interest. The interest is calculated per day after the 21st day of business.
Important: You won't get your refund if you're unable to verify the refund when SARS asks you to do so.
This confirms the importance of correct record keeping! It's in your best interest to keep meticulous and accurate records.
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