Value-Added Tax (VAT) Reviews & Recovery

Nahso conducts in-depth, confidential reviews of clients’ VAT transactions on a contingency basis covering a five-year prescription period. Our review methodology includes a line-by-line transactional assessment, leveraging proprietary in-house software to ensure accuracy and efficiency.

We focus on:

• Correct application of VAT provisions under the VAT Act.

• Compliance with legislative requirements.

• Optimal input tax recovery.

• Accurate output tax declaration.

• Identification of potential exposures.

Clients receive detailed progress updates, a customized close-out report, and recommendations supported by source documentation, ensuring swift VAT refunds and maximized revenue potential.

VAT Opinions

We provide written tax opinions on ambiguous VAT matters, clarifying interpretations of the VAT Act before clients make submissions to SARS. These expert insights mitigate risks and enhance decision-making.

SARS Objections and Appeals

Under the VAT Act (1991) and Tax Administration Act (2011), taxpayers may object to assessments issued by SARS. Nahso’s experienced tax team has a proven track record of assisting clients in reducing tax liabilities through:

• Alternative Dispute Resolution (ADR1 and ADR2).

• Tax court applications, where necessary.

Customs VAT

We assist clients in understanding and complying with VAT obligations related to the import and export of goods. This includes:

• Ensuring correct VAT treatment on goods imported for own consumption.

• Staying up-to-date with VAT amendments.

• Assisting with customs VAT claims and compliance documentation.

Financial Reporting on VAT

Our services support clients in preparing the VAT Disclosure Note for Annual Financial Statements (AFS). We have enabled clients to achieve clean audit outcomes from the Auditor-General through accurate and compliant VAT disclosures.

Accounts Payable Reviews

Our systematic Accounts Payable review process ensures every transaction through your AP and Cash Book systems is verified. This review enables Nahso to detect and recover:

• Duplicate, erroneous, or overpayments.

• Unclaimed settlement discounts and rebates.

• VAT paid to non-registered vendors.

• Non-compliant tax invoices.

• Price overcharges.

Debt and Account Maintenance with SARS

Tax Debt Compromise

We assist vendors in negotiating compromise agreements with SARS to settle tax debts for less than the full amount owed. Once approved, SARS will write off the remaining debt, subject to the taxpayer fulfilling agreed conditions.

Deferral / Payment Arrangements

Post-compromise or where cash flow issues exist, Nahso helps clients prepare and negotiate deferral or structured payment plans with SARS, ensuring continued compliance.

Request for Remission (RFR)

We assist in preparing and submitting Requests for Remission of administrative penalties and interest, where taxpayers face penalties due to non-compliance.

Voluntary Disclosure Programme (VDP)

Nahso supports clients in regularizing their tax affairs by guiding them through the VDP process, helping to mitigate or eliminate understatement and administrative penalties by voluntarily disclosing past tax irregularities.

Outstanding VAT Refunds

Our team has successfully unlocked long-outstanding VAT refunds for numerous clients. In some cases, SARS was compelled to pay interest due to delays. We handle SARS verifications and follow-ups to expedite the refund process.