Year: 2023

20 April 2023 – The Government Connect Issue 9 newsletter is now available.

Source: SARS Tariffs
Government Connect

19 April 2023 – Employment Tax Incentive Act, 2013: Binding General Rulings

• Binding General Ruling 47 (Issue 2) – Meaning of “month” in the definition of “monthly remuneration” and section 6(g) for employers remunerating employees on a weekly or fortnightly
• Binding General Ruling 44 (Issue 2) – Meaning of 160 hours for purposes of section 4(1)(b)

Source: SARS Tariffs
Legal Counsel – Binding General Rulings 41–60

14 April 2023 – Section 23(1A) of the Value-Added Tax Act, 1991, was amended, with effect from 5 January 2023, to ease the administration burden for a foreign supplier of electronic services and a foreign Intermediary (an Intermediary who is not a resident of the Republic), by introducing an exception when calculating the R1 million threshold. This exception applies where the said value of taxable supplies made has exceeded R1 million, in a consecutive period of 12 months, solely as a consequence of abnormal circumstances of a temporary nature. In such instance, there is no requirement for a Foreign Supplier of electronic services or a Foreign Intermediary to register for South African VAT.

• VAT-REG-02-G02 – Supply of Electronic Services by Foreign Suppliers and Foreign Intermediaries – External Guide

Source: SARS Tariffs
VAT Registration – Supply of Electronic Services by Foreign Suppliers and Foreign Intermediaries

4 April 2023 – The Minister of Finance announced in the 2022 Budget on 23 February 2022 that excise duty on vaping tobacco products would be introduced. Nicotine and nicotine-substitute solutions in vaping products will be included in the tax net with a flat excise duty rate of R2.90/ml from 1 June 2023.

The forms DA260 Excise Account for Tobacco Products in which the vaping products will be accounted for excise duty purposes were also amended accordingly to insert the vaping products. Manufacturers of these products are therefore required to apply for and obtain licenses for their manufacturing premises in respect of such products with SARS before 1 June 2023 and to submit their first excise duty account by 28 July 2023. Special storage warehouses in respect of such products should similarly be licensed with SARS before 1 June 2023. For more information, see the letter to Traders.

Source: SARS Tariffs
Taxing of Vaping Tobacco products with effect from 1 June 2023

3 April 2023 – Achieving our Vision 2024 of a smart, modern SARS with unquestionable integrity that is trusted and admired is of paramount importance. Pivotal to the delivery of our vision are our digital platforms & technology infrastructure. In order to provide clarity & certainty, make it easy for taxpayers & traders to comply with their obligations and building public trust and confidence, our technology assets have to demonstrate the highest levels of availability, robustness and security.

Pursuant to our Vision and Strategic Objectives, which include modernising our systems to provide Digital and Streamlined online services, we are hard at work ensuring that our digital platforms & technology infrastructure are available, robust & secure, by performing regular upgrades, enhancements and maintenance.

In the light of the above, system upgrades are scheduled for Tuesday, 4 April from 18:00 until 23:00. During this time various services on eFiling may not be available.

Source: SARS Tariffs
eFiling upgrade message

3 April 2023 – The South African Revenue Service (SARS) is pleased to announce its preliminary revenue collection results for the 2022/2023 financial year, which reflects a significant growth trajectory over the past few years.

The revenue collected annually provides 90% of government funding, which indicates SARS’ vital role in providing the resources that government can use for the reconstruction and recovery of the South African economy, as well as contributing to the long-term prosperity of our nation.

As at midnight on 31 March 2023, SARS collected a record gross amount of R2067.8 bn. The net collection after payment of R381.1bn in refunds is R1686.7bn. This is the first time since it was formed that SARS collected more than R2068.bn. The amount paid in refunds is also the largest ever paid since its formation.

See the full media statement here.

Read the Commissioner’s speech here.

Source: SARS Tariffs
Media release – SA continues to reap the benefits of improved revenue collection

1 April 2023 – SARS appointed the new service provider for VAT Refund Administration (VRA) who will provide services as from today, 1 of April 2023. See the webpage for VAT Refunds to Qualifying Purchasers, such as tourists and foreign enterprises for contact details and more information.

Source: SARS Tariffs
New service provider for VAT Refund Administration (VRA)

31 March 2023 – South Africa recorded a preliminary trade balance surplus of R16.1 billion in February 2023 attributable to exports of R154.3 billion and imports of R138.2 billion.

See the Media Release – February 2023 here.

Visit the Trade Statistics webpages.

Source: SARS Tariffs
Media release – Trade Statistics for February 2023

30 March 2023 – SARS is sending SMSs requesting taxpayers to settle their outstanding debt and avoid enforcement actions.

The wording of the SMS is as follows:  “Dear Taxpayer, you are reminded to pay your outstanding <Taxtype> Debt of R <Balance> on Account <TaxrefUnmasked> by 31 March 2023, to avoid further enforcement actions. Regards, SARS”

Please use the following channels to request and view a Statement of Account, should you require further information:

• Dial *134*7277# and follow the voice prompts; or
• Log onto your SARS eFiling profile; or
• Log onto SARS MobiApp profile.

To know if communication from SARS is legit, keep an eye on the Current surveys, SMSs and emails webpage.

Source: SARS Tariffs
SARS is requesting taxpayers to settle their outstanding debt

30 March 2023 – The VAT264 form has been modernised to make it easier and simpler for vendors to complete.  It has also been updated to align with the recent VAT amendment contained in the Taxation Laws Amendment Act, 2022. See the new form VAT264 declaration for the supply of second hand goods external form here.

Source: SARS Tariffs
VAT264 declaration for the supply of second hand goods form was enhanced