COVID-19 VAT Refund Relief

COVID-19 VAT Refund Relief

• 21 May 2020
• SARS

VAT vendors who are currently registered to file VAT returns on a bi-monthly basis will be allowed to file VAT returns on a monthly basis, thereby allowing the earlier unlocking of any VAT refunds due to them. The relief is enabled by the proposed amendment in the Draft Disaster Management Tax Relief Administration Bill, 2020 and will operate for a maximum period of four months as follows:

• VAT vendors, currently registered under Category A, will be permitted to file monthly VAT returns for the April 2020 to May 2020 tax periods and June 2020 to July 2020 tax periods, should such VAT vendor choose to do so;
• VAT vendors, currently registered under Category B, will be permitted to file monthly VAT returns for the May 2020 to June 2020 tax periods and July 2020 to August 2020 tax period, should such VAT vendor choose to do so;
• Should a VAT vendor, currently registered under Category B, choose to file a monthly VAT return for July 2020 (as it will result in a VAT refund), a monthly VAT return for August 2020 (whether it results in a VAT refund or not) will be required to close off the normal bi-monthly filing cycle.

Hence, there is no requirement by the VAT vendor to make application to the Commissioner to have the category changed to Category C (the monthly filing category), i.e. the VAT vendor is deemed to fall within Category C, if that VAT vendor elects to file a monthly return.

Any output tax attributable to supplies made during the month must be declared in line with time of supply rules in the month for which the VAT return is filed.

Please click here to read more.

This article first appeared on sars.gov.za.

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