A taxpayer is not sure whether his previous tax practitioner submitted all his VAT returns. He then checked the tax compliance status and identified that VAT returns from 201402 reflected as outstanding. The taxpayer then started submitting the outstanding
Important:
This answer is based on tax law year ending 28 February 2021.
Answer:
The VAT Act Section 44(4)(a) of the VAT Act determines that a refund may only be made by the Commissioner if the VAT return reflecting the refund amount is submitted within 5 years after the date on which the VAT return was due to be submitted. Application of the principles “Prescription journals” are processed by SARS in respect of VAT refund returns that should have been submitted more than 5 years ago (section 44(4)(a) of the VAT Act). The refund is accordingly permanently forfeited. VAT return not falling into the 5-year exclusion period should not be impacted.