Month: <span>Dec 2023</span>

29 December 2023 – National Treasury and the South African Revenue Service (SARS) have jointly published the 16^th annual edition of the Tax Statistics. The 2023 edition provides an overview of tax-revenue collection and tax-return information for the 2019 to 2023 tax years, as well as for the 2018/19 to 2022/23 fiscal years.

See the full media statement here.

Visit the Tax Statistics webpage.

Source: SARS Tariffs
Media release – Tax Statistics for the year 2023

29 December 2023 – South Africa recorded a preliminary trade balance surplus of R21.0 billion in November 2023. This surplus was attributable to exports of R185.8 billion and imports of R164.8 billion.

See the full Media Release here.

Or visit the Trade Statistics webpage.

Source: SARS Tariffs
Media Release – Trade Statistics for November 2023

14 December 2023 – Binding Private Rulings

• Binding Private Ruling 403 – Taxation of covered persons in respect of equity linked notes
• Binding Private Ruling 402 – Transfer of long-term insurance business to a local branch of a foreign reinsurer
• Binding Private Ruling 401 – Leasehold improvement allowance

Source: SARS Tariffs
Legal Counsel – Interpretation and Rulings – Binding Private Rulings 401–420

13 December 2023 – The Kariega (Uitenhage) branch office is offline until further notice. Taxpayers are encouraged to make an appointment to visit the nearest branches, i.e. Gqeberha Office.

Source: SARS Tariffs
SARS Kariega office is closed

11 December 2023 – The estimated assessment functionality has now been implemented for VAT. If a vendor does not provide the relevant material requested by SARS during the VAT verification process, SARS may raise an estimated assessment in terms of section 95(1)(c) of the Tax Administration Act. Please note the following regarding estimated assessments:

• The details of the estimated assessment can be viewed on the notice (VAT217) issued to the vendor.
• A Request for Correction will not be allowed if SARS has raised an estimated assessment for VAT in the same period.
• If the vendor does not agree with the estimated assessment, the required relevant material must be submitted within 40 business days from the date of the VAT217 notice that was issued.
• The vendor can submit the outstanding relevant material via eFiling, at a SARS branch or through the SARS Online Query System (SOQS).
• The vendor may Request for Extension if the relevant material cannot be submitted within 40 business days.
• If the Request for Extension is approved, the vendor will have up to the date of extension or five (5) years plus 40 business days to submit the relevant material.
• The vendor will be allowed to submit a Request for Suspension of Payment if the estimated assessment results in an amount payable for the period stipulated in the VAT217 notice issued.
• The vendor will not be allowed to submit a Notice of Objection (NOO) as an estimated assessment issued in terms of section 95(1)(c) is not subject to dispute.

See the following updated external guides:

• GEN-PEN-05-G02 – Guide to submit a Dispute via eFiling – External Guide
• GEN-ELEC-04-G01 – Guide to completing the Value Added Tax VAT201 Declaration – External Guide

 

Source: SARS Tariffs
VAT enhancements for estimated assessments

11 December 2023 – The estimated assessment functionality has now been implemented for VAT. If a vendor does not provide the relevant material requested by SARS during the VAT verification process, SARS may raise an estimated assessment in terms of section 95(1)(c) of the Tax Administration Act. Please note the following regarding estimated assessments:

• The details of the estimated assessment can be viewed on the notice (VAT217) issued to the vendor.
• A Request for Correction will not be allowed if SARS has raised an estimated assessment for VAT in the same period.
• If the vendor does not agree with the estimated assessment, the required relevant material must be submitted within 40 business days from the date of the VAT217 notice that was issued.
• The vendor can submit the outstanding relevant material via eFiling, at a SARS branch or through the SARS Online Query System (SOQS).
• The vendor may Request for Extension if the relevant material cannot be submitted within 40 business days.
• If the Request for Extension is approved, the vendor will have up to the date of extension or five (5) years plus 40 business days to submit the relevant material.
• The vendor will be allowed to submit a Request for Suspension of Payment if the estimated assessment results in an amount payable for the period stipulated in the VAT217 notice issued.
• The vendor will not be allowed to submit a Notice of Objection (NOO) as an estimated assessment issued in terms of section 95(1)(c) is not subject to dispute.

See the following updated external guides:

• GEN-PEN-05-G02 – Guide to submit a Dispute via eFiling – External Guide
• GEN-ELEC-04-G01 – Guide to completing the Value Added Tax VAT201 Declaration – External Guide

 

Source: SARS Tariffs
VAT enhancements for estimated assessments

11 December 2023 – As from the 2023 year of assessment, taxpayers are required to complete the section for “Local Assets (at Market Value)” on the Individual Income Tax Return (ITR12) if the value of their local assets is in excess of R50 million. Many taxpayers have contacted SARS seeking clarity on whether the asset value declared on the ITR12 return needs to be supported by a professional valuation.

It is not compulsory to obtain professional valuations to complete the market value of the local assets. SARS will accept a market value that is a reasonable best estimate, in other words, an estimate as close as possible to the market value of the particular asset. For more information, please refer to the comprehensive guide below.

The updated external guides are:

• IT-AE-36-G05 – Comprehensive Guide to the ITR12 Income Tax Return for Individuals – External Guide
• IT-AE-36-G06 – Guide to submit your Individual Income Tax Return via eFiling – External Guide

Source: SARS Tariffs
Local Assets at Market Value Declared on the ITR12 Return

11 December 2023 – As from the 2023 year of assessment, taxpayers are required to complete the section for “Local Assets (at Market Value)” on the Individual Income Tax Return (ITR12) if the value of their local assets is in excess of R50 million. Many taxpayers have contacted SARS seeking clarity on whether the asset value declared on the ITR12 return needs to be supported by a professional valuation.

It is not compulsory to obtain professional valuations to complete the market value of the local assets. SARS will accept a market value that is a reasonable best estimate, in other words, an estimate as close as possible to the market value of the particular asset. For more information, please refer to the comprehensive guide below.

The updated external guides are:

• IT-AE-36-G05 – Comprehensive Guide to the ITR12 Income Tax Return for Individuals – External Guide
• IT-AE-36-G06 – Guide to submit your Individual Income Tax Return via eFiling – External Guide

Source: SARS Tariffs
Local Assets at Market Value Declared on the ITR12 Return

8 December 2023 – The drawback claims can now also be submitted using the EDI channel.  The channel is currently available for Customs only. The SC-CF-55-A09 – Customs Status Response Messages – External Annexure has been updated to include the new Customs response messages (CUSRES) for the drawbacks using the EDI channel.

The refunds and drawback external guide (SC-DT-C-19) has been updated with a new process to use and complete the Comma Separated Value (CSV) file instead of capturing the information on eFiling.  The CSV file templates have been created for ease of use by the traders:

• SC-DT-C-13-A15 – DA64 CSV Template – External Annexure
• SC-DT-C-13-A16 – DA 63 CSV Template – External Annexure
• SC-DT-C-13-A17 – Excise With Export CSV Template – External Annexure
• SC-DT-C-13-A18 – Excise Non Export CSV Template – External Annexure

The Allocation Code for the DA 66 external annexure (SC-DT-C-13-A06) has been updated to include the code for the foodstuff manufacturers.

New Customs supporting document codes have been added to SC-CF-55-A11 – Supporting Document Codes – External Annexure and declarants must use the codes when uploading the supporting documents to a goods declaration, refund or drawback case.

The SC-CF-55-A05 – Country and Currency Codes – External Annex has been amended to reflect the official currencies used in the Republic of Belarus to Belarusian Rubie (BYN).

The updated policies and guide can be accessed through the following links:

• SC-DT-C-19 – Refunds and Drawbacks – External Guide
• SC-DT-C-13 – Refunds and Drawbacks – External Policy
• SF-CF-55 – Clearance Declaration – External Policy

For more information, see the Clearance Declaration webpage and the Customs Refunds and Drawbacks webpage.

 

Source: SARS Tariffs
Customs – New channel for Refunds and Drawbacks

8 December 2023 – Section 64E has been updated to enable Customs registrants or licensees to submit their application for accreditation electronically. The existing manual processes have been automated on the Customs Operational Portal.

All applications for the Authorised Economic Operator (AEO) programme must be done using the new automated process after 8 December 2023.

Benefits of the new automated AEO process:

• Elimination of manual process: Reduction of manual paper intensive process
• Electronic Submission: Clients can now submit electronic applications on eFiling
• Simpler Process: Making it easier for new applicants to be part of the AEO programme
• Dashboard Functionality: Dashboard functionality for eFiling clients to manage their own registration/licensing profiles
• Automated Notifications: Automated electronic notifications

Updated policies, guide and annexure:

• SC-CF-07 – Accreditation – External Policy
• SC-CF-19 – Registration Licensing and Accreditation – External Policy
• SC-CF-19-A01 – Documentary Requirements – External Annexure
• SC-CF-42 – Customs Trader Portal – External Guide

Source: SARS Tariffs
Customs & Excise – Automation of Registration Licensing and Accreditation for AEOs