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Evolving VAT Compliance – Do We Really Know What We Think We Know?
- 13 March 2025
- VAT
- Christo Theron
Do we know what we think we know?
In the previous webinar we asked the question whether we know what SARS knows. An equally important question whether we know what we think we know? We cannot continue managing VAT based on information and insights that are outdated and archaic. This article touches on some of the changes we cannot ignore.
The regulatory environment
The TAA
One of the most significant changes since the introduction of VAT in 1991, has been the introduction of the Tax Administration Act (TAA).
The TAA governs all the administrative processes in the VAT Act, including assessments, refunds, payments of VAT, objection and appeal processes, et cetera.
Both SARS and the taxpayer are obliged to strictly comply to the requirements of the TAA.
Those dear old templates
In practice, we often see taxpayers using templates that they have been using for many years for various purposes. These templates are often not aligned with the requirements of the TAA and accordingly result in non-compliance with the processes prescribed in the TAA.
Impacted taxpayers often take issue when SARS returns their objections or appeals (or other matters) on the basis that it does not comply with requirement of valid objections or appeals (not even talking about having missed prescribed deadlines). The basis of the unhappiness is often “This is the way we have always done it and SARS has always accepted it in the past.” Does that sound familiar?
Unfortunately, dear taxpayer, times have moved on.
The law
Many tax practitioners have an adversity (or shall we call it by its name – to lazy) to reading judgements on a regular and disciplined basis.
Knowledge of judgements is essential and forms the basis of interpreting tax acts. It is quite embarrassing when issuing an opinion where a court has already confirmed an alternative interpretation.
The upcoming webinar
In the upcoming webinar we shall go back to the basics of VAT and see how it fits into the more complex environment that has emerged since the introduction of VAT. This should empower attendees to interpret VAT principles within the contemporary legal and operating environments.