As indicated before regarding the Economic Recovery Plan for South Africa, announced by President Ramaphosa on 21 April 2020, various tax relief incentives have been introduced in order to provide businesses which have been negatively affected by the COVID-19 lockdown with breathing room and to assist their cash flows. One such tax relief measure is the fast-tracking in respect of VAT refunds to businesses.
In terms of this relief measure, VAT vendors who are registered to file VAT returns on a bi-monthly basis are permitted to file VAT returns on a monthly basis, therefore permitting the earlier unlocking of any VAT refunds due to them. It should be kept in mind that any output tax attributable to supplies made during the particular month must be declared in line with time of supply rules in the month for which the VAT return is filed.
This tax relief measure will be in effect for a maximum period of four months as follows:
In order to qualify for relief under this tax relief scheme, VAT vendors must -
Further information and practical examples pertaining to this relief measure can be found at https://www.sars.gov.za/TaxTypes/VAT/Pages/FAQs-for-VAT-vendors-on-Tax-Relief.aspx.
For the moment and at date of publication, this is the information we have obtained. We will keep you updated should any further relevant information come to our attention.
You are also welcome to visit our website at https://www.siyandisatrust.co.za/News.aspx to view previous advisories from us.
Although we have used our best efforts to ensure that all information contained in this communication is accurate as at the date hereof, we cannot guarantee the accuracy thereof and recommend verification thereof before use.
*Category A: Under this category, a vendor is required to submit one return for every two calendar months, ending on the last day of January, March, May, July, September and November.
+Category B: Under this category, a vendor is required to submit one return for every two calendar months, ending on the last day of February, April, June, August, October and December.
Type the code from the image