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Value-Added Tax Act, 1991 (Act No. 89 of 1991)

Part VI - Payment, Recovery and Refund Tax

44. Refunds

 

(1) [Subsection (1) deleted by the Tax Administration Act, 2011 (Act No. 28 of 2011)].

 

(2) [Subsection (2) deleted by the Tax Administration Act, 2011 (Act No. 28 of 2011)].

 

(3) The Commissioner shall not make a refund under Chapter 13 of the Tax Administration Act, unless—
(a) [paragraph (a) deleted by the Tax Administration Act, 2011 (Act No. 28 of 2011)]
(b) [paragraph (b) deleted by the Tax Administration Act, 2011 (Act No. 28 of 2011)]
(c) the Commissioner is satisfied that any amount of output tax claimed to be refundable to a vendor will, if such amount has been borne by any other person, in turn be refunded by the vendor to such other person;
(d) the vendor has furnished the Commissioner in writing with particulars of the enterprise’s banking account or account with a similar institution to enable the Commissioner to transfer a refund or other amount due to the vendor to such account: Provided that where the vendor which is—
(i) a company that is not a resident of the Republic requests that a refund or other amount be transferred to a bank account or an account with a similar institution in the Republic other than that account of the vendor; or
(ii)
(aa) a subsidiary company, as defined in section 1 of the Companies Act, 2008 (Act No. 71 of 2008), of a holding company, as defined in section 1 of that Act, requests that a refund or other amount be transferred to the bank account or the account with a similar institution in the Republic of that holding company;
(bb) a subsidiary company, as defined in section 1 of the Companies Act, 2008 (Act No. 71 of 2008), requests that a refund or other amount be transferred to the bank account or the account with a similar institution in the Republic of another subsidiary company of its holding company, as defined in section 1 of that Act; or
(cc) a holding company, as defined in section 1 of the Companies Act, 2008 (Act No. 71 of 2008), requests that a refund or other amount be transferred to the bank account or the account with a similar institution in the Republic of its subsidiary company, as defined in section 1 of  that Act,

the vendor must notify the Commissioner in writing and must indemnify the Commissioner against any loss by the vendor or the State as a result of such instruction.

 

(4)

(a) A refund of the amount of the excess contemplated in section 16(5) may only be made by the Commissioner if the return reflecting that amount is submitted within five years after the date on which the return was due to be submitted.
(b) The amount of an excess contemplated in section 16(5) is regarded as a payment to the National Revenue Fund if the amount is reflected on a return submitted after the period contemplated in paragraph (a).

[Subsection (4) substituted by section 28(1) of the Tax Administration Laws Amendment Act, 2016 (Act No. 16 of 2016)]

 

(5) [Subsection (5) deleted by the Tax Administration Act, 2011 (Act No. 28 of 2011)].

 

(6) [Subsection (6) deleted by the Tax Administration Act, 2011 (Act No. 28 of 2011)].

 

(7) Where the vendor has failed to furnish a return for any tax period as required by this Act, the Commissioner may withhold payment of any amount refundable to the vendor under section 190 of the Tax Administration Act until the vendor has furnished such return as so required.

 

(8) [Subsection (8) deleted by the Tax Administration Act, 2011 (Act No. 28 of 2011)].

 

(9) The Commissioner may make or authorise a refund of any amount of tax which has become refundable to any person under the provisions of any regulation referred to in paragraph (d) of the definition of "exported" in section 1.

[Subsection (9) amended by section 31 of Act No. 44 of 2014]

 

(10) The amount determined under section 191(3) of the Tax Administration Act must be accounted for as provided in section 16(5), but any refundable amount (irrespective of the quantum thereof) is refundable in full to a vendor in respect of its final tax period on the cancellation of its registration as a vendor.