q & a's for VAT vendors on COVID-19 Tax Relief

 

​No Question & Answer​​
1​

​Q: What is the COVID VAT Refund Relief for Vendors?
A: During April 2020 Government announced measures to assist VAT Vendors who are experiencing negative cash flow effects due to the COVID-19 lockdown. Accordingly, VAT vendors who are currently registered to file VAT returns on a bi-monthly basis will be allowed to file VAT returns on a monthly basis, thereby allowing the earlier unlocking of any VAT refunds due to them. The relief is enabled by the proposed amendment in the Draft Disaster Management Tax Relief Administration Bill, 2020 and will operate for a maximum period of four months as follows:

  • VAT vendors, currently registered under Category A, will be permitted to file monthly VAT returns for the April 2020 to May 2020 tax periods and June 2020 to July 2020 tax periods, should such VAT vendor choose to do so;
  • VAT vendors, currently registered under Category B, will be permitted to file monthly VAT returns for the May 2020 to June 2020 tax periods and July 2020 to August 2020 tax period, should such VAT vendor choose to do so;
  • Should a VAT vendor, currently registered under Category B, choose to file a monthly VAT return for July 2020 (as it will result in a VAT refund), a monthly VAT return for August 2020 (whether it results in a VAT refund or not) will be required to close off the normal bi-monthly filing cycle.

Hence, there is no requirement by the VAT vendor to make application to the Commissioner to have the category changed to Category C (the monthly filing category), i.e. the VAT vendor is deemed to fall within Category C, if that VAT vendor elects to file a monthly return.

Any output tax attributable to supplies made during the month must be declared in line with time of supply rules in the month for which the VAT return is filed.

​2

Q: ​Which taxpayers qualify for the COVID Refund Relief for VAT?
A: To qualify for the COVID VAT Refund Relief VAT vendors must:

  • Currently be registered under either Category A or B
  • Be fully compliant, meaning:
    • Is registered for all required taxes;
    • Have no outstanding returns for any taxes for which they are registered;
    • Have no outstanding tax debt or including a tax debt for which there is an agreement for an instalment payment arrangement or compromise or suspended tax debt pending objection or appeal or tax debt of R100 or less.
​3

​Q: How can I check if I am compliant?
A: To determine if you are compliant, you can: 

  • View your compliance status via eFiling on the “My Compliance Profile” page;
  • Request the latest Statement of Account for the taxes you are registered for;
  • Call the SARS Contact Centre to request your compliance status.
​4

​Q: For which periods can I claim the COVID VAT Refund Relief for Vendors?
A: The COVID Refund Relief for VAT Vendors is available as follows:

  • VAT vendors, currently registered under Category A, will be permitted to file monthly VAT returns for the April 2020 to May 2020 tax periods and June 2020 to July 2020 tax periods, should such VAT vendor choose to do so;
  • VAT vendors, currently registered under Category B, will be permitted to file monthly VAT returns for the May 2020 to June 2020 tax periods and July 2020 to August 2020 tax period, should such VAT vendor choose to do so.

Should a VAT vendor, currently registered under Category B, choose to file a monthly VAT return for July 2020 (as it will result in a VAT refund), a monthly VAT return for August 2020 (whether it results in a VAT refund or not) will be required to close-off the normal bi-monthly filing cycle. The same principle will apply to a VAT vendor currently registered under Category A.

​5

​Q: What VAT return filing periods will be allowed according to my filing category?

Category A filing period:

  • Example for 2020 filing:
For period
File in
 
Dec 2019 - Jan 2020
Feb 2020
 
Feb 2020 - Mar 2020
Apr 2020
 
April 2020
May 2020
* month 1 of relief
May 2020
Jun 2020
* month 2 of relief
Jun 2020
Jul 2020
* month 3 of relief
Jul 2020
Aug  2020
* month 4 of relief
Aug 2020 - Sep 2020
Oct 2020
 
Oct 2020 - Nov 2020
Dec 2020
 



Category B filing period:

  • Example for 2020 filing:
For period
File in
 
Jan 2020 - Feb 2020
Mar 2020
 
Mar 2020 - Apr 2020
May 2020
 
May 2020
Jun 2020
* month 1 of relief
Jun 2020
Jul 2020
* month 2 of relief
Jul 2020
Aug 2020
* month 3 of relief
Aug 2020
Sept 2020
* month 4 of relief
Sept 2020 – Oct 2020
Nov 2020
 
Nov 2020 – Dec 2020
Jan 2021
 

 

6

​Q: How do I submit my VAT return?

A: Vendors can submit the VAT return via eFiling on or before the last business day of the month, and via any SARS branch by the 25th (or the last business day before) after the end of the tax period.

Note: VAT charged on supplies made (output tax) less VAT paid to your suppliers (input tax) and other permissible deductions = the amount of VAT payable/refundable.

​7 ​Q: When am I entitled to a refund? 
A: If a vendor is entitled to a VAT refund, SARS is required to pay that VAT refund within 21 business days of receiving the correctly completed VAT return in respect of that VAT refund, without incurring any interest on that VAT refund.

 

 

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Last Updated: 21/05/2020 4:28 PM     print this page
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