Additional VAT assessments raised without SARS requesting supporting documents
31 March 2014
Posted by: Author: SAIT Technical
Author: SAIT Technical
The answer to this query is based on legislation as at 2014/03/31.
father, a dentist, has been issued with a VAT assessment in respect of the 2
months ended September 2013. This assessment disallows the full input claim
for the period without any reasons being advised. Moreover, I believe that
procedurally the issuing of the assessment was incorrect; a SARS auditor
simply telephonically requested supporting documents for this period from my
father. No search letter/ official written correspondence was ever issued
requesting the information; an assessment was simply raised.
is not a unique problem that your father is experiencing with SARS, and
specifically with VAT. I would appreciate it if you would forward me
the screen prints and assessments in order to prove to SARS that an
assessment was raised without the proper notification. SAIT will
include this in our submission to SARS as proof that the tax practitioners
are experiencing this problem. Even though SARS has not followed the correct
procedure, it does not make the additional assessment invalid.
suggest you request reasons for the assessment (disallowance of input VAT
deduction) as without the reasons for the assessment one will be unable to
prepare an objection. So the first step will be to request the reasons for
the assessment and then to request the suspension of payment, indicating the
intent to submit an objection.
According to SARS the request for
reasons for the assessment shows intent. As long as the taxpayer can
show intent for the submission of an objection, SARS has to consider the
suspension of payment. Please remember to e-mail me the proof as requested in
this regard in order to include in the examples of operational issues that
SAIT wishes to submit to SARS.