The South African Revenue Service (SARS) has recently announced the implementation of a new stringent VAT registration process, aiming to address a concerning trend of suspicious registrations by VAT vendors. In a media statement released last week, SARS highlighted a significant spike in registrations during April, prompting an urgent review of their registration process.
While SARS strives to provide ease of registration, they also acknowledge the risk of abuse and fraudulent refund claims. SARS’s advanced risk engine detected an unusual increase in suspicious registrations, leading to the adoption of stricter measures.
Here is the latest communication from SARS regarding the new VAT registration process: