The South African Revenue Service (SARS) has launched a new automated VAT assessment system, which registered VAT taxpayers in the country need to familiarise themselves with.<\/p>\n\n\n\n
Launched on 11 December 2023, the new system will automatically issue assessments for VAT taxpayers who fail to submit necessary verification documents on time<\/strong>.<\/p>\n\n\n\n According to Zulfah Mullins, tax compliance officer at Hobbs Sinclair, one of the most notable aspects of the new system is that corrections will not be allowed for the same period once an automated VAT assessment is issued.<\/strong><\/p>\n\n\n\n Mullins noted that:<\/p>\n\n\n\n According to SARS, this system aims to enhance tax compliance and streamline the VAT process. <\/p>\n\n\n\n Mullins said that the change underlines the importance of timely compliance, as it will significantly impact how VAT vendors manage their submissions and handle assessments.<\/p>\n\n\n\n SARS has been aggressively targeting non-compliant taxpayers this year as part of its wider bid to increase tax collections.<\/p>\n\n\n\n The taxman has faced a challenging year, with SARS achieving revenue collection growth of only 2.6% due to a decline in corporate income taxes and growing VAT refunds.<\/p>\n\n\n\n SARS deputy commissioner Johnstone Makhubu said that tax collections are R22 billion below the February 2023 budget estimates for the first five months of the 2024 financial year. <\/p>\n\n\n\n With the decrease in collections, the taxman is doing everything to can to raise funds \u2013 with non-compliant taxpayers its primary target.<\/p>\n\n\n\n While the revenue service has been relatively successful in boosting personal income tax revenues, corporate and VAT tax collections have been more strained.<\/p>\n\n\n\n\n
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