Dear fellow taxpayer,

SARS gave notice last week that it will stop all refunds to vendors who are dormant, non-compliant, who have failed to submit Vat 201 returns for a prolonged period or whose Vat 201 returns for the last 12 months reflect no output tax!

SARS will suspend or cancel your Vat registration where it believes that you aren't complying with the requirements of the Vat Act (Section 23(3) and 24(5), Vat Act).
 
SARS identified thousands of these vendors and sent them notices last week Monday (14 September 2009) by post and email (for e-filers), informing them of the cancellation or suspension of their Vat registration with immediate effect.

If you receive such notice and want to remain registered as a Vat vendor (and get any refunds due to you), you or your authorised representative must immediately go in person to the nearest SARS branch with the following:

• Proof of identity;
• Evidence that you're actually engaged in a business activity (e.g. invoices for the purchases and sales made in the past 12 months); and
• Latest bank statements or reasons why you've made no sales in the last 12 months.

SARS could also request a physical inspection of your business premises!

Here's a tip: Before contacting SARS, seriously consider whether you even want to remain Vat-registered. If your turnover is less than R1 million a year and you supply mainly to final consumers, you should seriously consider accepting the deregistration!

And if you don't agree with SARS' decision to deregister you, you can object and appeal the decision.

Finally, on a different note…

This is the last bulletin you will receive from me as I am leaving Fleet Street Publications to pursue one of my other passions (other than tax): Intellectual property law!

It has been a pleasure researching, writing and editing for you!

Regards and all the best.
 
 

Nothando Hlatshwayo
Managing Editor
The Practical Tax Handbook