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15/10/2026

SARS Intensifies Crackdown on Alleged VAT Refund Fraud in South Africa.

On 7 October 2026, SARS announced that 14 accused parties appeared in the Siyabuswa Magistrates’ Court in connection with an alleged R3.99 million VAT refund fraud scheme. The investigation, part of Project Jan Vas, involves suspected fraudulent tax returns submitted between 2016 and 2020 across several provinces.
The case highlights SARS’s increased use of technology and law-enforcement partnerships to combat tax fraud. Under the Tax Administration Act, proven tax offences may result in criminal prosecution, financial penalties and recovery of unpaid taxes.
Businesses should maintain accurate VAT records and ensure that refund claims are properly supported. However, errors or disputes with SARS do not automatically constitute fraud, and taxpayers retain the right to challenge assessments. Early specialist legal advice is important where criminal allegations may arise.

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27/08/2026

SARS has warned South African taxpayers that late tax returns can result in monthly penalties that become very expensive over time.
• Penalties start at R250 per month for low-income taxpayers.
• Those earning R250,000–R500,000 can face R500 per month.
• Higher-income taxpayers can face penalties of up to R16,000 per month.
• Over 35 months, the maximum penalty could reach R560,000.
• Penalties may continue for up to 47 months if SARS has an outdated address.
• Understatement penalties are separate and can range from 10% to 200%, depending on the circumstances.
• SARS also charges interest on outstanding tax and penalties, currently stated as 10.25% per year.
• Taxpayers who have penalties can request remission if they have a valid reason for missing the deadline, such as serious illness or a SARS error.
• People unable to pay may apply for a payment arrangement or instalment plan.
• SARS says its increased compliance efforts contributed to collecting more than R2 trillion in tax revenue during 2025/26.
Bottom line: Filing tax returns on time is important because SARS penalties can accumulate every month and become extremely costly.

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20/08/2026

SARS VAT Modernisation

SARS is proposing a major modernisation of South Africa’s VAT system by moving towards a more digital and automated approach to VAT administration.

The proposed system would use e-invoicing, digital data sharing and electronic reporting to allow VAT information to move securely between businesses, service providers and SARS. The aim is to reduce manual administration, improve the accuracy of VAT information and allow SARS to identify possible errors, fraud and non-compliance more efficiently.

For VAT-registered businesses, the changes could eventually mean that accounting and invoicing systems need to exchange VAT information in a structured digital format. Businesses may therefore need to ensure that their accounting records, invoices, VAT calculations and supporting documentation are accurate and properly maintained.

SARS intends to introduce the system gradually and in consultation with affected stakeholders. Feedback will help determine the technical requirements, implementation stages, costs, risks, safeguards and readiness requirements.

The proposed modernisation is intended to benefit both SARS and taxpayers by improving compliance, reducing duplication, simplifying VAT administration and creating a more transparent and efficient VAT environment.

SARS has invited interested parties to submit written comments by 16 October 2026.

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22/07/2026

South Africans who received an automatic assessment from SARS can amend their tax returns from 13 July if they identify missing or incorrect information. While SARS has streamlined the assessment process and issued refunds more quickly, taxpayers should still review their assessments carefully. One area often overlooked is retirement annuity (RA) contributions, particularly excess contributions carried over from previous tax years. These deductions may not always be reflected if SARS did not receive all the necessary information. Retirement annuity contributions remain tax-deductible within the prescribed limits, with the maximum annual deduction increasing to R430,000 from 1 March 2026 for the 2026/27 tax year. Any contributions above the annual limit are carried forward to future tax years and should be reflected on the taxpayer's ITA34 assessment.

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19/06/2026

SARS rolls out phased Filing Season:

SARS has introduced a phased approach for the 2026 Filing Season to simplify tax filing. Auto Assessments will run from 1–12 July 2026 for eligible taxpayers, followed by the general filing period from 13 July to 23 October 2026, while provisional taxpayers and trusts have until 22 January 2027.

Taxpayers are encouraged to update their details and use digital platforms such as eFiling and the SARS MobiApp. Refunds may be processed within 72 hours where all information is correct and no verification is required.

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26/05/2026

Commissioner Makhubu emphasized that Modernisation 3.0 is central to SARS’s future strategy, focusing on advanced technology, digital services, data-driven administration, and smarter compliance systems. He added that these improvements will be supported by skilled employees through ongoing training and knowledge development to keep up with legal, economic, and technological changes.

He reassured compliant taxpayers that SARS aims to make tax compliance simpler, more transparent, and professional. At the same time, he warned that individuals who intentionally evade taxes or misuse the system will face firm enforcement actions, stressing that a fair tax system depends on everyone contributing responsibly.

Makhubu also reflected on the meaning of Workers’ Day, saying it highlights that institutions should serve people and marks a new phase for SARS built on experience, ethical leadership, and continuity.

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12/05/2026

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12/05/2026

TAX RETURNS

Certain taxpayers in South Africa may not need to submit an income tax return to South African Revenue Service for the 2026 tax year if their income falls within specific limits. This includes individuals earning under R500,000 from a single employer where PAYE was deducted, limited local interest income, tax-free investment earnings, exempt dividends for non-residents, or a single retirement fund lump sum that was taxed according to a SARS directive.

However, these exemptions do not apply to taxpayers who received travel or subsistence allowances, taxable employment benefits, or foreign employment income.

Taxpayers who receive and accept a SARS auto-assessment are also generally not required to file a return manually. SARS has expanded its auto-assessment system using third-party data to simplify the filing process. Taxpayers must still ensure that all income, deductions, exemptions and rebates are accurate before accepting the assessment. If the auto-assessment is not accepted, a normal tax return must be submitted.

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23/03/2026

BIG CHANGES FOR FOREIGNERS WHO OWN PROPERTY IN SA.
Foreign Property Owners in SA face several 2026 tax changes, incl adjusted tax brackets, a higher CGT, and a new VAT threshold. While these offer some relief, foreigners might need to file with SARS even with low income, and benefits like the R3m primary residence exclusion can be difficult to access due to resedency rules. Joint ownership can help maximise tax advantages

26/02/2026

VOLUNTARY VAT REGISTRATION - The voluntary VAT threshold will increase from R50 000 to R120 000. A vendor that makes taxable supplies of more than R120 000 but not more than R2.3 million a year can apply for voluntary registration. The adjustment will take effect on 1 April 2026.