Charged 15.5% VAT? Tax expert has advice for consumers
Consumers who have been
charged VAT at 15.5% have the option of contacting the supplier to claim back
their money.
That is according to the director at AJM Tax, Leonard Willemse.
"So, there is a mechanism that is allowed for by the VAT legislation where customers can ask the relevant supplier to issue them with a credit note. So, in other words, let's say they have received an invoice for 15.5% and they have already made payment based on that invoice.
"They can then request that supplier to essentially cancel that invoice by issuing a credit note and be refunded the relevant amount that was overcharged in the form of additional VAT."
The South African Revenue Service says vendors that have not implemented the change in rate are expected to charge VAT at 15%, while those that have already implemented the rate change have until mid-May to make the necessary system adjustments.
READ: School nutrition providers relieved by VAT hike U-turn
Last week, Finance Minister Enoch Godongwana reversed his decision to raise VAT, effectively nullifying the budget, which was adopted by Parliament.
Willemse says consumers would need to check their invoices to ensure they are not overcharged.
"I think it is going to be a while, I would say a month or so where you have to really diligently look at your account statement, look at your invoices that you have received, and make sure that you have not been overcharged. In the event that you have been overcharged, inform the supplier and make sure that you action the refund process."
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