VHA Accounting Solutions

Recently the following Acts containing amendments to the VAT Act were published.

A brief summary of some of the more important VAT amendments is provided below:

  • Life insurance / financial services – textual amendments have been made in section 2 to align the terminology used with reference to the Insurance Act, 2017. As a result, the VAT Act now refers to “life” insurance and not “long-term” insurance. The amendments take effect from 19 January 2022.
  • Temporary letting of dwellings by developers – New provisions in the form of sections 9(13), 10(29), 16(3)(o) and 18D have been introduced to deal with dwelling units that have been developed for sale by a developer and such dwellings are temporarily let for exempt residential use whilst the developer continues to pursue a taxable intention of selling the units. Section 18D applies from the date that any newly developed property held for taxable supplies is temporarily let for the first time on or after 1 April 2022. More information in this regard will be provided in a future issue of VAT Connect. Note that the 2022 Draft TLAB contains a few proposed amendments concerning the application of section 18D.
  • International telecommunications services – section 11(2)(y) was further amended to align the zero-rating of international telecommunications services with the International Telecommunication Regulations. The amendments confirm that the zero-rating will not apply if the telecommunications service is provided to any branch, main business or customer of an International Telecommunications Service Provider situated in the Republic. The only exception in this regard is the supply of international roaming services.
  • Zero-rated foodstuffs – Item 2 of Part B to Schedule 2 to the VAT Act has been extended to include super fine maize meal in the list of zero-rated foodstuffs contemplated in section 11(1)(j).
  • Estimated assessments – significant amendments were made to section 95 of the TA Act regarding certain aspects of estimated assessments with effect from 20 January 2021 and then again with effect from 19 January 2022. Section 95 of the TA Act previously allowed the Commissioner to make an estimated assessment if a taxpayer does not submit a return or submits a return or relevant material that is incorrect or inadequate. These circumstances have now been expanded to include a situation where the taxpayer does not submit a response to a request for relevant material after delivery of more than one request for such material to the taxpayer. The Commissioner bears the burden of proving that the estimated assessment is valid and reasonable. An estimated assessment does not detract from the obligation by a taxpayer to submit a return or the relevant material for the tax period concerned. A taxpayer may, however, within 40 business days from the date of the estimated assessment, request SARS to issue a reduced assessment or additional assessment by submitting a true and full return or the relevant material. If the taxpayer fails to do this, the assessment becomes final and will not be subject to objection or appeal. In that case, the burden of proof relating to the validity or reasonableness of the estimated assessment will move from the Commissioner to the taxpayer. The period of 40 business days cannot be extended beyond the prescription period for VAT in section 99 of the TA Act except in a case where the estimated assessment is raised within 40 days of the prescription date. A consequential amendment was made to section 99 of the TA Act in this regard to provide that the prescription periods do not apply in a case where it is necessary to give effect to a reduced or additional assessment requested within the period of 40 business days.
  • VAT Notice R.2185 was published in GG 46589 dated 24 June 2022 regarding the inclusion of licensed customs and excise storage warehouses as places where diplomats may be able to obtain new motor vehicles

Kashveer Mathura

Accounting Portfolio Manager

kashveer@vhaaccounting.com 078 882 9783

Adrian Surjoo

Quality Control Manager, SAICA

Credentials:

  • National Diploma in Cost and Management
  • Accounting
  • Advanced diploma in Accounting Sciences
  • Professional Accountant (S.A.)

Bongumusa Zondi

Director

Bongumusa Zondi, a senior accountant, blends business advisory with expertise in financial reporting and taxation. With just under a decade of experience in accounting and taxation, his career journey began by obtaining a National Diploma in Cost and Management Accounting and an Advanced Diploma in Accounting Sciences at the Durban University of Technology and University of South Africa, respectively. This was followed by a Junior Bookkeeper position at City Printing Works (Pty) Ltd. He began his SAIPA articles at Dobeyn Accounting Soultions and currently leads a dynamic accounting team and manages a sizeable portfolio of clients at VHA Accounting Solutions where he also completed his SAIPA Articles. Apart from assisting clients update their books and stay compliant with relevant authorities, he is fully interested in adding value through business advisory. Helping clients solve their financial problems and provide guidance on potential growth opportunities is his biggest passion. He has been driven by philosophies of teamwork and collaboration.

Notable achievements include qualifying as a Professional Accountant (S.A.) through SAIPA. Beyond the numbers, he enjoys watching sports, tutoring grade 12 learners, playing the piano and listening to classical music composed by Wolfgang Amadeus Mozart and George Frideric Handel, adding a well-rounded dimension to his professional life.

bongumusa@vhaaccounting.com 082 359 4536

Karishma Bhola

Director

The VHA Accounting Solutions team is excited to announce a new insurance service offering headed by Karishma Bhola. Karishma is an accredited financial advisor and has 18 years of experience in the finance industry and expertise in marketing/foreign exchange and business management. As a seasoned financial guru, she prides herself on delivering excellent client service every time.

Vidyanth Bhola

Director / CEO

Passionate about exceptional client service, Vidyanth Bhola serves a wide client base as an advisor and accountant.Vidyanth focuses on tax planning and estate and succession planning, which he approaches with enthusiasm for human relationships and a penchant for teamwork, to achieve outstanding results. In addition to being VHA Accounting Solutions Inc founder and as director of the Bhola group of companies, Vidyanth is involved on the board and advisory level with several non-profit organisations and other initiatives. Vidyanth obtained his BCom degree and H Tax Diploma from the University of South Africa after which he worked at Colenbrander Inc, as a Accounting Portfolio Manager. In 2018, Vidyanth found the accounting firm VHA Accounting Solutions Inc. Vidyanth is a family man and avid rugby fan. He enjoys learning about Aviation and flew a Boeing in the flight simulator in Dubai. Vidyanth also works on various charity organisations and is involved in various food drives. Vidyanth is a member of the South African Institute of Tax Professional (SAITA) and the Southern African Institute for Business Accountants (SAIBA).