Guidance concerning the request for value added tax (VAT) rulings has been provided by the South African Revenue Service (SARS).
Section 72 of the VAT law effectively provides that when a vendor (or class of vendors) experiences difficulties, anomalies or incongruities in applying any provisions of the VAT law as a result of the manner in which its enterprise is conducted, the SARS may issue a ruling to overcome such difficulties, anomalies or incongruities.
Following a review, section 72 was amended (effective 1 July 2019). In March 2020, SARS noted that the reason for the amendment included factors to:
All existing rulings issued prior to 21 July 2019—and that cease to be effective between 21 July 2019 and 31 December 2021—are subject to transitional rules introduced by SARS but can, in certain instances, be reconfirmed. However, all rulings and reconfirmed rulings will expire no later than 31 December 2021.
Those vendors applying for a new ruling under Section 72 after 21 July 2019 must submit the application in the form and manner provided for in the SARS VAT guide (published by 9 April 2020) and must include the following:
Read an August 2020 report [PDF 72 KB] prepared by the KPMG member firm in South Africa
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