- VAT refunds in South Africa rose to R342.9 billion in the 2023/24 financial year, a 7.5% increase from the previous year
- The amount was R7.9 billion short of expected estimates, prompting discussions about the balance between efficient refund processes and fraud investigations
- Delays in the refund process have been a long-standing issue affecting South African businesses
- Taxpayers are entitled to timely refunds as stipulated in the VAT Act and Tax Administration Act
- Businesses facing delays in receiving VAT refunds have legal options available, including claiming interest on delayed refunds
- Collaboration with tax attorneys can help ensure SARS meets its obligations in the VAT refund process
- Results from PwC’s Taxing Times Survey 2024 showed mixed sentiments among taxpayers regarding compliance with tax obligations and SARS’ service delivery
- 62% of respondents reported receiving their refunds within the stipulated 21 days, indicating progress in operational efficiency.
Source: iol.co.za
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
