Nwanda internal news (March)
16 MarchSARS VAT reviews and audits
16 MarchA VAT vendor (an individual or a business entity) has certain administrative duties in terms of the various acts applicable to VAT, one of which is to notify SARS when their registered business bank account changes. If a vendor does not notify SARS as required, a fixed-amount administrative penalty may be imposed by SARS. Fixed-amount penalties are based on the amount of the assessed loss/taxable income for the preceding year.
Channels through which a change in banking details may be requested
Banking details for VAT can only be changed through the following channels:
- In person at a SARS branch (preferred), assisted by a branch agent, and
- Via eFiling.
SARS does not accept requests for change of banking details by telephone, fax, email, post or SARS dropboxes anymore.
Persons allowed to request a change in banking details
Only the following persons may request a change in banking details and this person’s details must match the existing details on SARS’s records:
- A representative who must be a natural person e.g. accounting officer, member of a close corporation, treasurer, partner, etc. and is registered as the official representative of the VAT vendor on the SARS system.
- Only under certain exceptional circumstances:*
- A tax practitioner who is registered with a controlling body and SARS and can present a valid power of attorney.
- A person with a mandate e.g. bookkeeper, auditor, director, administrative officer of the tax practitioner, attorney, etc. A person with a once-off mandate must be linked to a tax practitioner in order to change the vendor’s banking details on E-filing.
*Circumstances accepted by SARS as exceptional and which requires alternative/additional documentation to be submitted:
- Vendor’s deceased estate
- Vendor/representative vendor is incapacitated or terminally ill
- Vendor is in prison
- Business is under liquidation
- Vendor is more than 200km from SARS branch
- Representative vendor is temporarily outside RSA
Documentation required for change in banking details
Table 1
The following documents must be submitted to SARS by the vendor/representative vendor requesting the change of banking details:
| DOCUMENT DESCRIPTION | DOCUMENT DETAILS | |
| Vendor/Representative vendor | ||
| a) | Identification:Valid original ID/temporary ID/passport/driving licence/asylum seeker certificate | Original plus one certified copy |
| b) | Proof of residential address (See Table 2 for list of documentation that SARS will accept as proof of residential address) | See Table 2 |
| c) | Letter of appointment from the vendor if the request is received from representative vendor | One original |
| Tax practitioner/Person with a mandate | ||
| d) | Power of attorney | One original |
| If VAT vendor is a company/close corporation | ||
| e) | Memorandum of Incorporation (MOI) | One copy |
| f) | Proof of banking details:Not more than 3 months old and shows account holder’s legal name, account number, account type and branch code | |
|
One original | |
|
One original | |
Letter from the bank on bank letterhead with original bank stamp showing date on which bank account was opened |
One original | |
| g) | Proof of physical business address of vendor (See Table 2 for list of documentation that SARS will accept as proof of physical business address) | See Table 2 |
Table 2
SARS will accept any of the documents below as proof of residential address or physical business address:
| DOCUMENT DESCRIPTION | MAXIMUM AGE | |
| 1. | Municipal account | 3 months |
| 2. | Student fee account | 3 months |
| 3. | Co-op statement (for farmers only) | 3 months |
| 4. | Medical aid statement | 3 months |
| 5. | Bond statement from bond holder | 6 months |
| 6. | Telephone account | 3 months |
| 7. | Licence for motor vehicle | 1 year |
| 8. | Court order | 3 months |
| 9. | Subpoena | 3 months |
| 10. | Traffic fine | 3 months |
| 11. | Documents for payout of pension or UIF | 3 months |
| 12. | Life insurance policy document | 1 year |
| 13. | Short-term insurance policy document | 1 year |
| 14. | Health insurance policy document | 1 year |
| 15. | Funeral policy document | 1 year |
| 16. | Investment statement for shares or unit trusts | 1 year |
| 17. | Current and valid lease/franchise contract | N/A |
| 18. | Form CRA01 (Confirmation of Entity Residential Address):
A certified copy of the original third party’s ID/passport/driver’s licence OR temporary ID/passport/driver’s licence must be supplied |
Not supplied |
The above requirements may seem onerous, but SARS has a responsibility towards taxpayers to prevent unauthorised changes to their banking details, and SARS takes this responsibility very seriously.
This article is a general information sheet and should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.
Reference List:
- VAT-MTD-05-G01 – Change of Banking Details for a Registered VAT Vendor