News

24 April 2023 – Dispute Resolution Enhancements

Over the past weekend SARS released system enhancements to improve its efficiency and effectiveness in resolving tax disputes. These enhancements will also ensure that only the tax in dispute is considered for suspension of payment.

The most significant system changes to be implemented include:

• Calculation of disputed amount: On submission of an appeal the calculation of the value of the amount disputed will be automated. This will reduce the time taken in internal allocations, improve the accuracy of suspensions of payment and assist internal reporting on disputed debt.

• Updating taxpayer contacts: Taxpayers will now be able to amend their contact details for purposes of their tax dispute on eFiling. This will facilitate earlier engagement by SARS and allow taxpayer to include the contact details of their representative chosen for purposes of resolving the tax dispute. 

• Request for Remission: The request for remission functionality has been extended to include remission requests for provisional underestimation penalties levied in terms of paragraph 20(1) of the Fourth Schedule to the Income Tax Act No. 58 of 1962. This functionality is now aligned to the applicable legislation.

• Request for Reasons: New automated Request for Reasons outcome letters have been implemented. Previously if SARS agreed that reasons for the assessment had to be supplied, manual letters were issued.

• Objections: Where SARS requires additional substantiating documents to enable it to consider an objection, it is now able to issue up to three (3) requests to the taxpayer for the supply of the requested documents. This will ensure that most of the dispute related information gathering is done during the objections phase of a tax dispute.

• Appeals: Automated letters have been introduced for appeals administration for Alternative Dispute Resolution (ADR) have been implemented as follows:
  • Notice confirming that an appeal is suitable for ADR;
  • Notice extending the period of ADR proceedings;
  • Notice terminating the ADR proceedings; and
  • Notice confirming the outcome of an appeal.

In addition to the above various internal processes have been streamlined to reduce resolution times of especially appeals in ADR proceedings. The enhancements to taxpayer contact details and automated notices will greatly improve communication with taxpayers.

Pivotal to the delivery of SARS’ Vision 2024 are our digital platforms & technology infrastructure. These enhancements will aid in providing clarity & certainty and make it easy for taxpayers & traders to comply with their obligations.

Source: SARS Tariffs
Dispute Resolution

Enhancements to the current Tax Compliance Status (TCS) system due to new opportunities and legislative changes include, but are not limited to:

• The definition of what it means to be tax compliant, the business process and usability of the existing TCS system to drive continuous compliance, strengthen the compliance result and provide a superior customer experience.
• The discontinuation of “Tender” as an option for Tax Compliance Status request.
• Strengthening legislative alignment with the SARB exchange control changes as it pertains to Emigration, with the introduction of a new dynamic application called “Approval International Transfer (AIT)”, to replace the existing “Emigration” and “Foreign Investment Allowance (FIA)” application types.

The Tax Compliance Request form (TCR01) has been amended to align to the required changes.

Updated guides:

• GEN-ELEC-08-G01 – Guide to the Tax Compliance Status functionality on eFiling – External Guide
• IT-AE-49-G01 – Services offered by SARS via the SARS MobiApp – External Guide

Source: SARS Tariffs
Enhancements to the Tax Compliance Status Process

20 April 2023 – The Tax Practitioner Connect Issue 41 newsletter is now available.

Source: SARS Tariffs
Tax Practitioner Connect

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)