Sometimes, you may pay SARS more tax than you need to, by mistake or on purpose. This can happen for many reasons, like estimating your income wrong, paying twice, getting tax breaks, or paying tax before you get your income.
You can ask SARS to give you back the extra money you paid. This is a refund. A refund is when SARS gives you back the money you paid too much, with some interest.
This piece will update you on how to receive a SARS repayment, who can obtain a refund, what to do to acquire a refund, how to figure out if SARS will repay you, and how long you will wait for that repayment.
How to claim a refund for excess tax paid in South Africa?
Did you pay SARS more tax than you should? You can receive your coins back. Below is everything you should do:
- Forward your tariff return for the year you need a refund. Tell SARS your income and tax. You can do this online with eFiling or face-to-face at a SARS office.
- See your tax assessment notice showing your tax, payment, and refund. You can see this online with eFiling or face-to-face at a SARS office.
- Give your bank account details – where SARS will send your refund. You can do this online with eFiling or face-to-face at a SARS office.
- Wait for SARS to say yes to your refund, which can take 21 days or less, depending on your tax and your info. You can see how your refund goes online with eFiling or by calling SARS at 0800 00 7277.
- Receive the repayment, which enters your bank or comes as a cheque if you lack a bank account. You will see a repayment notification updating you on the figure and the day you expect the repayment.
Can I get a refund of the excess tax paid?
You can receive a repayment of the excess tariff paid if you comply with the following requirements:
- You filed your tariff return for the associated evaluation year and declared your taxable earnings and tariff paid.
- You have paid more tax than you owe, either by mistake or by withholding.
- You have verified your banking details with SARS and provided the correct bank account where you want SARS to pay your refund.
- You have not received any notice from SARS that your refund is withheld, offset, or reduced for any reason, such as an audit, a debt, or a dispute.
What is the procedure for claiming a refund?
The following is the process for requesting a refund:
- Declare your taxable income and amount of tax paid on your tax return for the applicable assessment year. You can file your tax return in person at a SARS branch office or online through eFiling.
- Examine your notice of tax assessment, which details your tax obligations, taxes paid, and outstanding refunds. You can review your tax assessment notice in person at a SARS branch or office or online through eFiling.
- Check your banking information, which includes the bank account information where you wish SARS to deposit your reimbursement. You can check your banking information at a SARS branch, office, or online using eFiling.
- Await the processing of your refund by SARS, which could take up to 21 business days based on the intricacy of your tax situation and the validation of your data. You can use 0800 00 7277 to connect with the SARS Contact Office Center to confirm the station of your repayment, or you can track it online via the eFiling page.
- Get your repayment – which will be loaded into the bank account you have approved, or, if you do not have a bank account, you’ll get a check. A repayment update that includes the figure and the day of your repayment will also be forwarded to you.
Who is entitled to claim a refund?
Anybody who overpaid more tax through error or withholding than they owe SARS is entitled to a return of the excess amount. This could apply to people, businesses, trusts, partnerships, or other South African tax-registered entities.
You could owe SARS excess tax for a number of typical causes, including:
- Because you overestimate your taxable income, you pay more tax than you should, given your income.
- By mistake or confusion, you pay the same tax twice by making two payments.
How do I know SARS will refund me?
You will know SARS will refund you if you meet the following criteria:
- You have filed your tariff return for the associated evaluation year and declared your taxable earnings and tax cleared.
- You have forwarded more tariffs than you owe, either by error or withholding.
- You have certified your banking info with SARS and forwarded the appropriate bank account where you wish SARS to deposit your repayment.
- You have not received any notice from SARS that your refund is withheld, offset, or reduced for any reason, such as an audit, a debt, or a dispute.
You can also check if SARS will refund you by:
- Checking your tax assessment notice, which shows your tax liability, tax paid, and refund due. You can check your tax assessment notice online via eFiling or at a SARS branch or office.
- Tracking the status of your refund online via eFiling, or by calling the SARS Contact Centre on 0800 00 7277.
How long does it take for SARS to pay a refund?
Based on the complication of your tariff affairs and the confirmation of your info, SARS may take up to 21 working days to clear your repayment. However, some repayments may be cleared quicker or slower than this, grounded on varied factors, such as:
- The kind and the figure of your refund
- The accuracy and completeness of your tax return and your supporting documents
- The verification and the audit processes that SARS may conduct on your tax return and
