South Africa: Vendors must respond to VAT verification requests with 40 business days
Vendors must respond to VAT verification notices issued by SARS within 40 business days
The South African Revenue Service (SARS) on 11 December 2023 announced that vendors must respond to value added tax (VAT) verification notices issued by SARS within 40 business days from the date of the assessment (VAT217). If the VAT 217 results in an additional amount payable, the vendor may request suspension of payment.
The VAT verification notices generally have requested standard information / documentation to be submitted by vendors, but the most recent notices are more comprehensive (e.g., contracts, financing arrangements, customer payment arrangements) and very specific on the information / documentation to be submitted such that the requested information / documentation differs from vendor to vendor.
An estimated assessment is only subject to objection and appeal once SARS decides not to make a reduced or additional assessment after the relevant information / documentation has been submitted by the vendor within the required timeframe.
Read a January 2024 report [PDF 395 KB] prepared by the KPMG member firm in South Africa