Glynis Smith is a CASA with years of experience in accounting, she sent me this in response to my most recent piece on the causes of our economic plight.
I prepare the VAT returns for a manufacturing concern. We have recently developed an export market for an exciting new product. We are expanding production to meet this demand and, as a result, we have built up our levels of raw material inventory.
This resulted in a VAT refund becoming due for our May VAT return. As we were due to a refund we naturally received a query from SARS asking for documentation. I duly sent off the required documentation on 29 June this year.
As at today’s date (October 5) we have not received the refund or any further requests for information.
The refund due is nearly R400,000. This is currently funding SARS’ revenue target rather than our expansion.
As I understand it the government wishes to expand our exports and employment in the manufacturing sector. It does not seem to have communicated this desire to SARS.