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Thread: VAT Refund Issue with SARS and Efiling???please help

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    VAT Refund Issue with SARS and Efiling???please help

    Good day fellow accountants ,etc.

    I am a accounting tech and tax technician.

    Due to me starting out small and not having many clients i need the correct info on the following senario:

    1) We have submitted VAT returns for 3 periods. 2 of which were VAT refunds.

    Questions

    1) I have uploaded the verification documents on efiling, as i read that it could be done this way. It was only bank charges and 1 or 2 invoices. So i didn't see fit to go all the way to a SARS branch just to submit those documents if i could upload them to Efiling. Was this the correct choice and how long will SARS take ? Till now its been about 10 days since upload and the refund manager shows that they still busy with verification.

    2) Can the refunds be allocated to the outstanding amounts owed to SARS ? The client payed a portion and what was left was the same amount as the Refund amount. for the current year but the previous year refund makes the refunds more than the owed amount. Now sars is putting interest on owed amount ,but the refunds are biger in value than owed amount is this correct?


    Thanks in advance guys

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    Hi Rourke

    They take at least 21 WORKING DAYS to make a refund. They will also not make the refund if any taxes are owed. In your case it's probably ok, but the penalty and interest on the amount owed will not be reversed.

    Efiling is probably more effective than delivery at a branch, so you just have to be patient, and bleed....

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    Quote Originally Posted by Andromeda View Post
    Hi Rourke

    They take at least 21 WORKING DAYS to make a refund. They will also not make the refund if any taxes are owed. In your case it's probably ok, but the penalty and interest on the amount owed will not be reversed.

    Efiling is probably more effective than delivery at a branch, so you just have to be patient, and bleed....
    HI Andromeda

    Thanks a lot with the reply

    I also need more clarity on the following question if you can help.

    2) Can the refunds be allocated to the outstanding amounts owed to SARS ? The client payed a portion and what was left was the same amount as the Refund amount. for the current year but the previous year refund makes the refunds more than the owed amount. Now sars is putting interest on owed amount ,but the refunds are bigger in value than owed amount is this correct?

    Kind regards
    Rourke

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    Hi Rourke

    They will do one of two things:
    1. First subtract any amount owed to them and then pay what's left
    2. Do nothing because amounts are owed to them.

    You should wait for a completion letter for each period that they audited. Once you have the completion letters, wait 7 days then request that they pay the refunds. Lodge your request by email to contact.crentral@sars.gov.za and in the subject line quote the VAT number and the case numbers and make a polite request. They will normally subtract all and any owed amounts and instruct that the difference be paid.

    Refunds will only accrue interest if all impediments are absent or from the date that obligations were discharged.
    Last edited by Andromeda; 03-Oct-18 at 06:52 AM.

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    In my experience with SARS you cannot offset one tax against the other with regards to refunds - Seems to always back fire and they use any outstanding amount to not pay refunds and cancel tax clearance certificates

    If your e filing shows a refund on say PAYE , you have to allocate the refund to the outstanding tax and my understanding was that the allocation can only be to PAYE and no other tax.

    At the moment it is only your calculations that show a refund , the way I read the above.As far as the receiver is concerned , you owe them tax money and they will leave any work on your account until the amount is received.Only then will they start looking at the refund portion - They are desperate for money at the moment so any excuse not to pay out

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    Thanks alot GCE

    I understand the way you explain it.

    I will have to ask the client to pay the outstanding first then

    regards

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