SARS detects a high number of suspicious VAT registrations
- May
- 15
VAT
SARS detects a high number of suspicious VAT registrations
SARS has indicated that R381 billion in refunds were paid in the fiscal year 2022/23, of which R319 billion were VAT refunds.
With the substantial increase in applications for VAT registrations, SARS has identified an increase in questionable VAT vendor registrations. Resulting in SARS performing an urgent evaluation of its registration procedure. As a result of SARS’ observations on VAT registrations, and identification of potential for fraudulent activities, the following has been implemented:
- 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 at a SARS’ branch to [physically undertake a validation and accreditation process;
- Where applicants are expected to visit a branch, the visit must be pre-booked on the SARS website;
- All supporting documents that are required for registration validation must be submitted at the branch on the day of the appointment; and
- VAT registration will only be effected when SARS has satisfied itself that the application is lawful (click to see).
