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NEW! SARS changes VAT registration rules (after flood of suspicious activity)
- 12 May 2023
- Accounting
- South African Accounting Academy
SARS said it noticed a trend of suspicious registrations by VAT vendors. In the month of April, specifically, it saw a significant spike that required it to conduct an urgent review of its registration process.
As a result of these observations in VAT registrations, and the increase in the potential for fraud, the following is to be implemented with immediate effect:
- All new applications for VAT registration will be subjected to a more stringent registration process which could include the requirement that the applicant present themselves, in person, to the branch closest to where the business enterprise is located for validation and accreditation.
- Where applicants are expected to visit a branch, the visit must be pre-booked on the SARS website, by clicking on the “Book an Appointment” icon.
- All supporting documents that are required for registration validation must be submitted at the branch on the day of the appointment.
- VAT registration will only be effected when SARS has satisfied itself that the application is lawful.
SARS said it is ready to pursue criminal charges against these perpetrators.
Click here to download the Media Statement:
Relevance to Auditors, Independent Reviewers & Accountants:
- The VAT Act is yet another piece of legislation that your clients must comply with, and which you must assess compliance with. If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
- As an auditor, independent reviewer, accountant and tax practitioner, you may need to advise your clients on the latest VAT Registration rules.
- As a vendor, you also need to comply with the VAT Act in your business.
Relevance to Your clients:
- A vendor (individual, company or close corporation) has a duty to comply with the VAT Act, otherwise they could be held liable.
To stay current with all the latest changes and updates subscribe to our Monthly Compliance and Legislative Update series for R 250.00 per month. This gives you access to a monthly 2-hour webinar and monthly newsletter:
https://accountingacademy.co.za/profession/monthly-legislation-update
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