'Miserable Xmas' over no-show of VAT refunds
Small vendors in Namibia say the non-payment of value added tax (VAT) refunds by the South African Revenue Services (SARS) will probably bring some owners and companies close to bankruptcy and a miserable Christmas, “to say the least”.
Alister Slamat, VAT refund administrator for SARS in Namibia, last week “encouraged” businesses “not to expect any payments for this year” as the “chances are slim to zero” that SARS would process any of the claims before the end of the year.
The administrator's office in Namibia will be closed between 15 December and 2 January.
Slamat did offer an apology, though, saying that his office was well aware of the long overdue payment of claims for this year, which he reiterated was due to incorrect completion of customs documentation, mainly the SAD500 exporter details.
This claim, which was confirmed by SARS's Sandile Ntoyi in Pretoria, is disputed by the vendors who said not everyone could have made the same mistake since SARS has not paid out any VAT refunds since March, or as early as January.
Slamat reiterated that his office had sent claims back to SARS for payment and that his office was waiting for the finalisation thereof.
“At this moment we are unable to indicate when payment will be made on these claims but we have been assured that it is being worked on in order to clear the payment backlog stretching as far back as March,” Slamat wrote to traders.
According to SARS's website, it is required to pay VAT refunds within 21 business days of receiving the correctly completed documents.
It states that if the refund is not paid within the required 21 business days, it will have to pay interest, at the prescribed rate, on the amount that is refundable.
SARS has, however, reportedly informed traders that they would not get interest on the delayed refunds, which escalates the frustration of the businesses.
The South African media last week reported that a report from the office of the tax ombudsman, Judge Bernard Ngope, found that between October 2016 and March 2017 SARS withheld more than N$25 billion in VAT refunds.
It reported that taxpayers complained that SARS has used “dubious tactics” to delay or avoid refunds.
Reuters last week reported that SARS was concerned over falling tax compliance reportedly over growing unhappiness with the South African government.
SARS had indicated that of the 6.4 million taxpayers only 4.8 million had submitted tax returns, which meant that tax revenue for the 2017/18 financial year underperformed by N$50,8 billion, the largest amount since the 2009 recession.
CATHERINE SASMAN
Alister Slamat, VAT refund administrator for SARS in Namibia, last week “encouraged” businesses “not to expect any payments for this year” as the “chances are slim to zero” that SARS would process any of the claims before the end of the year.
The administrator's office in Namibia will be closed between 15 December and 2 January.
Slamat did offer an apology, though, saying that his office was well aware of the long overdue payment of claims for this year, which he reiterated was due to incorrect completion of customs documentation, mainly the SAD500 exporter details.
This claim, which was confirmed by SARS's Sandile Ntoyi in Pretoria, is disputed by the vendors who said not everyone could have made the same mistake since SARS has not paid out any VAT refunds since March, or as early as January.
Slamat reiterated that his office had sent claims back to SARS for payment and that his office was waiting for the finalisation thereof.
“At this moment we are unable to indicate when payment will be made on these claims but we have been assured that it is being worked on in order to clear the payment backlog stretching as far back as March,” Slamat wrote to traders.
According to SARS's website, it is required to pay VAT refunds within 21 business days of receiving the correctly completed documents.
It states that if the refund is not paid within the required 21 business days, it will have to pay interest, at the prescribed rate, on the amount that is refundable.
SARS has, however, reportedly informed traders that they would not get interest on the delayed refunds, which escalates the frustration of the businesses.
The South African media last week reported that a report from the office of the tax ombudsman, Judge Bernard Ngope, found that between October 2016 and March 2017 SARS withheld more than N$25 billion in VAT refunds.
It reported that taxpayers complained that SARS has used “dubious tactics” to delay or avoid refunds.
Reuters last week reported that SARS was concerned over falling tax compliance reportedly over growing unhappiness with the South African government.
SARS had indicated that of the 6.4 million taxpayers only 4.8 million had submitted tax returns, which meant that tax revenue for the 2017/18 financial year underperformed by N$50,8 billion, the largest amount since the 2009 recession.
CATHERINE SASMAN
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