VAT and Tax Alert

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Submission of Third Party (IT3) returns to SARS

On 5 April 2013 SARS issued a notice in terms of s26 of the Tax Administration Act 2011 (TAA), requiring specified persons (reporting institutions) to submit bi-annual returns in respect of information as required in terms of the notice. These returns of information were previously required in terms of s69 of the Income Tax Act. Importantly the returns must be filed for applicable amounts for a half year period and then for a full year period.

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Foreign businesses selling digital products in South Africa to be registered as VAT vendors

National Treasury has proposed that foreign businesses, which sell digital products to South African customers should be required to register for VAT purposes in South Africa. The potential VAT implications of digital product sales, including books and music sold via the internet by suppliers who are neither resident nor established in South Africa, have caused uncertainties and resulted in VAT compliance concerns for these foreign businesses.

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On-Site Verification: Be aware of the potential impact on your business

The South African Revenue Service's Customs National Audit team has developed and is deploying an intensive information gathering exercise whereby detailed information is sought regarding the respondent's business. This on-site verification process is a precursor to the implementation of the revised Customs and Excise Act, 1964 ("the Customs Act") anticipated to be made effective in the third quarter of 2010. With greater emphasis on Customs' clients being selfcompliant, the National Audit Team appear to be preparing for the implementation of this new legislation by enhancing the customs to business interactions.