VAT enhancements for estimated assessments

VAT enhancements for estimated assessments are changes to the VAT Act and the Tax Administration Act that affect how SARS can issue estimated assessments for VAT vendors who do not submit their returns or supporting documents on time. These changes aim to improve compliance and reduce tax evasion.

Some of the main features of the VAT enhancements for estimated assessments are:

• SARS can issue an estimated assessment based on the information available to them, such as previous returns, third-party data, industry averages, or any other relevant information.
• The estimated assessment is due and payable within 21 business days after the date of assessment, unless the taxpayer objects or requests a suspension of payment.
• The taxpayer can avoid the estimated assessment by submitting the outstanding return or documents before the date of assessment, or by providing a satisfactory explanation for the delay.
• The taxpayer can object to the estimated assessment within 30 business days after the date of assessment, and must provide the outstanding return or documents with the objection.
• SARS can impose penalties and interest on the unpaid tax resulting from the estimated assessment, as well as administrative non-compliance penalties for the late submission of returns or documents.

Should you have any queries in this regard please do not hesitate to contact us for professional advice.