SARS ‘Ready’ To Implement VAT Increase

PICTURE:

JOHANNESBURG: SARS is ready to implement the increase in VAT from 14 to 15 percent on April 1, as announced in the February budget speech.

“SARS teams have been working on changes to the systems which are used to receive VAT declarations made by vendors and calculate any VAT refunds or VAT due to SARS. Changes to the VAT201 form have been made to reflect the increase in the VAT rate,” SARS said in a statement on Tuesday.

Vendors who use SARS eFiling to submit their VAT return and have saved returns that span periods before and after 1 April 2018 will notice that those saved returns have been removed as they contain incorrect VAT rates. Vendors must request a new VAT201 on eFiling.”

SARS also urged vendors to update their systems to align to the new VAT rate in preparation for April 1, in order to minimise confusion for the customer and make it easier for vendors to remain tax compliant and make the correct declarations to Sars.

“Vendors are encouraged to visit the Value Added Tax page on the SARS website www.sars.gov.za where they will find a Pocket Guide and a set of Frequently Asked Questions to assist them in understanding the implications of the VAT rate increase on various types of transactions.”