We all know that the South African Revenue Service (SARS) is under pressure to collect more revenue from the ever-dwindling pool of SA tax-paying corporates.
We also know that South African businesses, especially importers/exporters, are under immense pressure from all sides in today’s challenging environment, and so you were probably too busy keeping your head above water to notice this communication recently issued by SARS.
In a nutshell, SARS believes that incorrect disclosure of VAT information on import/export declarations is widespread and occurring regularly, and they see this as low hanging fruit. If SARS identifies instances where incorrect VAT information was used then you could be asked to pay back input VAT claimed on imports, or to pay VAT on zero rated exports, and this could have huge cash flow implications for your business. You will also then be left with the added headache of having to resolve the dispute with SARS to try to get your money back.
We don’t want this to be the proverbial straw for SA taxpayers’ backs, so let us help you stay one step ahead.
Our Customs health check offer: VAT disclosure on customs clearance documents
For a flat fee of R8 500 we will perform a health check on VAT disclosures on your customs clearance documents that will (hopefully) give you complete comfort that there are no skeletons in your Customs closet, and thus no low hanging fruit for SARS, for the last two years of trading activity. And if not, then our health check will highlight potential areas of exposure for the last two years and recommend steps you could take to address these.
And the best part is… we only need confirmation of your customs code and a signed authorisation (we will provide) for SARS to release your relevant import/export data to us for the last two years.
We have your back here at Regan van Rooy on all things tax related and we aim to keep you one step ahead.
About the author:
Wian is a customs and international trade specialist and a registered Master Customs Practitioner. Wian specialises in customs tariff investigations, applications for reduction, increase of the customs duty, rebate provisions and the creation of new tariff subheadings.