11 December 2023 – The estimated assessment functionality has now been implemented for VAT. If a vendor does not provide the relevant material requested by SARS during the VAT verification process, SARS may raise an estimated assessment in terms of section 95(1)(c) of the Tax Administration Act. Please note the following regarding estimated assessments:
- The details of the estimated assessment can be viewed on the notice (VAT217) issued to the vendor.
- A Request for Correction will not be allowed if SARS has raised an estimated assessment for VAT in the same period.
- If the vendor does not agree with the estimated assessment, the required relevant material must be submitted within 40 business days from the date of the VAT217 notice that was issued.
- The vendor can submit the outstanding relevant material via eFiling, at a SARS branch or through the SARS Online Query System (SOQS).
- The vendor may Request for Extension if the relevant material cannot be submitted within 40 business days.
- If the Request for Extension is approved, the vendor will have up to the date of extension or five (5) years plus 40 business days to submit the relevant material.
- The vendor will be allowed to submit a Request for Suspension of Payment if the estimated assessment results in an amount payable for the period stipulated in the VAT217 notice issued.
- The vendor will not be allowed to submit a Notice of Objection (NOO) as an estimated assessment issued in terms of section 95(1)(c) is not subject to dispute.
See the following updated external guides:
- GEN-PEN-05-G02 – Guide to submit a Dispute via eFiling – External Guide
- GEN-ELEC-04-G01 – Guide to completing the Value Added Tax VAT201 Declaration – External Guide
