If you're still waiting on a VAT refund, now is the time to take legal action. Taxpayers and tax practitioners alike are reporting a surge in delayed refunds, with Sars citing pending verifications or audits, but only after a manual status check is performed. This is not a procedural glitch - this is a systemic failure with serious financial implications.

No Notification, No Upload Link, No Way to Respond

In many recent cases, Sars has requested further verification documentation without issuing any formal notification through eFiling or on email. Making matters worse, there is often no link available to upload the required documents because no verification or audit letter was ever generated. Taxpayers are unknowingly rendered non-compliant - setting the stage for Sars to disallow input VAT, impose penalties and interest, and even initiate collection steps. Even in instances where the link is provided and documentation uploaded, additional assessments are subsequently issued with the reason of “burden of proof not discharged”.

Even if you find yourself in a position where Sars seemingly has not put you through the verification or audit process, or where Sars allege that the “burden of proof not discharged”, despite supporting documents being uploaded, the message is clear: do not wait! Follow up proactively and confirm whether any verifications or audits have been raised behind the scenes, and use the dispute resolution steps to correct assessments where appropriate. 

Systemic Collapse: More Than Just VAT

These issues are not isolated:

• Registered representative updates are stuck in limbo for weeks, often rejected on dubious grounds;
• VAT refunds are being reversed - in some instances, years after being verified and paid out;
• Call centres are unreachable, with some taxpayers reporting being on hold for up to six hours; and 
• Physical appointments at Sars branches are booked out for up to two months, leaving taxpayers and practitioners alike with nowhere to turn.

Sars Is Using Its Powers - But Not the Law

With little to no communication, Sars continues to invoke its wide collection powers - often appointing third parties (like your bank) to settle alleged tax debts. When internal systems collapse, the balance of power shifts disproportionately in Sars’ favour, leaving taxpayers with no recourse but to fight back after the fact.

How You Can Fight Back!

A legal strategy, backed by a skilled tax attorney, is no longer a luxury - it’s a necessity. Not only to help you stay compliant, but to ensure Sars is held to account - within the legislative safeguards and prescribed timeframes designed to protect taxpayers. When Sars fails to notify you of verification requests or breaches these deadlines, legal intervention becomes essential. This includes initiating formal dispute resolution processes and applying for a suspension of payment to prevent unlawful collections.

The current climate has left many tax practitioners overwhelmed, battling Sars on every front while fielding frustrated calls from their clients. The burden shouldn’t fall on you alone. A legal strategy, backed by a skilled tax attorney, is no longer optional. It’s a critical requirement!

Written by André Daniels, Head of Tax Controversy & Dispute Resolution at Tax Consulting SA