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Basis for computing VAT returns if source documents destroyed

Tuesday, 01 July 2014   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical 

The answer to this query is based on legislation as at 01/07/2014.

Q: Client registered for VAT and SARS registered them going back to 2010. From information supplied by the client, all her source documentation was destroyed by rats. On what basis can we compute the VAT returns.

A: If no source documents exist that can accurately verify the VAT inputs it would be advisable to approach SARS to agree to an estimated assessment under s95(3) of the Tax Administration Act based on other documents such as accounting records or banking records.

If possible you could maybe tried to source a copy of the larger invoices from suppliers in terms of section 20(1)9ii) of the VAT Act. It seems unlikely that SARS will accept an application under the Voluntary Disclosure Program as per their guide they will reject application in respect of returns outstanding that they are aware of which seems to be your position.



Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.

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