SARS: What ‘Audit & Verification’ Means

By Dave Nyam •  Updated: 01/23/24 •  5 min read

In the realm of South African taxation, grasping the intricacies of “Audit” and “Verification” within the framework of the South African Revenue Service (SARS) is of paramount importance. These procedures hold considerable significance for both individuals and businesses. Let’s delve into what ‘Audit & Verification’ entails and what individuals and businesses can anticipate.

- ADVERTISEMENT -

SARS: What ‘Audit & Verification’ Means

The South African Revenue Service (SARS) administers two distinct procedures:

How long does SARS audit verification take?

The duration of a SARS audit or verification can exhibit significant variability. These processes are pivotal aspects of tax compliance within South Africa, and taxpayers often contemplate the timeframe required for SARS to conclude these reviews.

The swiftness of resolution hinges on the complexity of the review. Simplistic verifications are usually expeditious, potentially culminating within a few weeks. These are routine validations aimed at confirming the accuracy of information provided in tax returns. When taxpayers maintain meticulous records, and there are no conspicuous discrepancies, the process can be relatively swift.

On the flip side, intricate audits can be protracted. These audits necessitate an exhaustive examination of an individual’s or business’s financial and tax records and could span several months or even years. The intricacy of one’s financial affairs is a key determinant of the timeline. In instances where SARS harbors suspicions of non-compliance or irregularities, they may embark on a thorough audit, inherently a more time-consuming endeavor.

SARS’ workload is another pivotal factor influencing the duration. Backlogs in cases can impede the expeditious processing of audits and verifications.

Moreover, the cooperation of the taxpayer plays a pivotal role. Timely responses to SARS’ requests for information or documentation can accelerate the process. Conversely, delays in providing requested materials can prolong the audit or verification.

What are SARS verification documents?

SARS verification documents are fundamental records that corroborate the information declared in one’s tax return. When selected for verification by the South African Revenue Service (SARS), individuals or businesses may be required to furnish a gamut of documents to substantiate the veracity of their tax declarations. These documents are integral in upholding compliance and transparency within the tax assessment process.

- ADVERTISEMENT -

Typically, SARS verification documents encompass a diverse array of financial records, including:

  1. Bank Statements: These records elucidate one’s financial transactions, encompassing income and expenditures, thereby verifying the accuracy of the financial information declared.
  2. Invoices: Invoices related to income earned or expenses incurred can be solicited by SARS to corroborate the legitimacy of claims.
  3. Receipts: Evidence of payments and receipts for expenses substantiates deductions and credits.
  4. Payroll Records: When applicable, payroll records validate employment income and associated deductions.
  5. Tax Certificates: Documents such as IRP5 certificates issued by employers serve to authenticate income from employment.
  6. Asset Records: Documentation pertaining to assets, such as property deeds or vehicle registrations, may be requisitioned.
  7. Expense Records: Records delineating business expenses, medical outlays, or other deductible items serve as crucial verification tools.

SARS typically specifies the necessary documents based on the nature of the tax return and the specific aspects they seek to verify. Individuals and businesses must maintain precise and well-organized records. Objection or the inability to forward requested files can cause hold-ups, penalties, or further assessment.

How Long Does it Take to Receive Funds After a SARS Audit?

The timeline for receiving funds subsequent to a South African Revenue Service (SARS) audit largely hinges on the outcome of the audit. If the audit culminates in a refund, SARS endeavors to process the refund within a reasonable timeframe, typically targeting 21 business days. Nevertheless, several factors may influence this timeline.

One pivotal factor that can impact the refund process is if the audit uncovers any disparities or triggers concerns regarding one’s tax returns. In such instances, SARS may instigate further reviews or investigations, leading to delays in the receipt of the refund. It is imperative to promptly address any inquiries or issues raised by SARS to expedite the refund process.

To expedite the refund process:

  1. Maintain Accurate Records: Meticulous record-keeping and ensuring the accuracy of tax returns can avert discrepancies that might trigger delays.
  2. Respond to SARS Promptly: If SARS requests additional information or clarification during the audit, respond promptly by providing the requisite documents and information.
  3. Seek Professional Guidance: If uncertainties regarding any aspect of tax returns persist, consider consulting a tax professional to ensure compliance and precision.

Conclusion

Effectively navigating the audit and verification processes conducted by SARS necessitates meticulous record-keeping and adherence to tax laws. Seeking professional guidance when confronted with an audit is advisable, and timely, accurate responses to SARS’ requests for information are crucial. A comprehensive understanding of these procedures can empower taxpayers to ensure seamless interactions with SARS and to uphold tax compliance.

- ADVERTISEMENT -

Keep Reading

How to Complete a Tax Directive Application eFiling

How to Complete a Tax Directive Application eFiling

Understanding how to navigate the eFiling platform for tax directives is essential for ensuring compliance with tax laws and accurately managing tax obligations.

How to Get SARS Confirmation Letter

How to Get SARS Confirmation Letter

This article explains everything you want to know about getting a SARS confirmation letter.

How to File Tax Return On eFiling 2025?

How to File Tax Return On eFiling 2025?

How to File Tax Return On eFiling. This article explores how to file your tax return using SAR's online eFiling system.

How to get my SARS Tax Certificate Online

How to get my SARS Tax Certificate Online

The SARS tax certificate refers to proof of your tax compliance status. We will cover everything you need to know about this document below.

How the SARS Income TAX Brackets Work

How the SARS Income TAX Brackets Work

This guide is meant to give you the information you need to understand and navigate the tax brackets set by SARS in South Africa easily

How to Avoid Donations Tax In South Africa

How to Avoid Donations Tax In South Africa

By the end of this guide, you'll be equipped with valuable knowledge to navigate the South African donations tax landscape effectively.

How to Register For VAT SARS

How to Register For VAT SARS

Learn how to register for VAT SARS through eFiling. Get a step-by-step guide to activate your VAT profile and submit returns on eFiling

How to Check Tax Refund Status 

How to Check Tax Refund Status 

This guide will tell you how to monitor the refund status with SARS, when to expect your refund, and what to do if you encounter any difficulties

How to Change Portfolio Type on eFiling

How to Change Portfolio Type on eFiling

Here’s everything you need to know on how to manage your portfolios of eFiling. To change your portfolio type on eFiling, here’s what you to do.

Difference Between VAT and TAX?

Difference Between VAT and TAX?

What Is the Difference Between VAT and Tax in South Africa? This guide explains the difference between VAT and tax. 

How To Complete The Tax E-Filing Registration Process

How To Complete The Tax E-Filing Registration Process

Setting out on your tax e-filing journey in South Africa is a breeze. Just follow this roadmap:

How to Register for Turnover Tax

How to Register for Turnover Tax

How to Register for Turnover Tax. Read on to learn how to register for turnover tax.  

How Long Does It Take For SARS to Pay Out Refund?

How Long Does It Take For SARS to Pay Out Refund?

How to Deregister SARS Efiling

How to Deregister SARS Efiling

This article explains everything you need to know about how you can deregister SARS eFiling.

How to Pay SARS eFiling On Absa

How to Pay SARS eFiling On Absa

How to Pay Sars eFiling On Absa. We will cover the SARS payment options and other related matters dealing with SARS payments.