Section 45 of the Vat Act provides that SARS has 21 business days not 21 days to make a vat refund, subject for example , to the taxpayer providing relevant information if refund audited, all his Vat returns are up to date (including income tax returns ,Employees Tax returns etc).So provided the taxpayer has met SARS’ requirements (as indicated above) in terms of Vat Act and Tax Administration Acts, the taxpayer is entitled to be paid interest after the 21 business days have elapsed. The important issue is that adequate and complete records are kept to support returns submitted and that a detailed record of a particular taxpayer’s dealings with SARS regarding any audits undertaken is kept and retained.
The taxpayer is entitled to have his refund finalised timeously,failing which matter can be escalated to structures within SARS branches, SSMO and Tax Ombud.
SAIT has SARS escalation lists on its website and SARS does have information on its website relating to Vat refunds and complaint procedures.
Hope the above helps.