Good news! SARS has finally issued a FAQ for schools impacted by the exemption that was to be effective on the 1st of January. The full detail is available here: https://www.sars.gov.za/wp-content/uploads/Ops/Guides/Legal-Pub-Guide-VATRef02-VAT-Reference-Guide-Schools-Exiting-the-VAT-System.pdf

Given that the law was applied retrospectively, SARS assumed in the Guide that schools had still charged VAT and collected input VAT up to April, when the law change was actually promulgated. To quote from the Guide:

Section 31(1)(e) provides that the Commissioner will make an assessment if a vendor represents that tax is charged on a supply, even if that supply is not taxable. Therefore, if a school charged VAT on its tuck shop or uniform sales between 1 January 2026 and 31 March 2026, such tax is payable to SARS. The same principle applies to a school that continued to charge VAT on or after 1 April 2026. However, the school will not be entitled to any input tax on these supplies, as they are exempt, and the school is no longer conducting an enterprise from 1 January 2026. To rectify the above, schools should take the following actions:

• Issue credit notes for the VAT charged on the supplies. SARS will only refund the VAT previously charged if there is proof that the VAT has been repaid to the recipient.
• Submit a Request for Correction (RFC) if input tax and other deductions were made. Refer to Request for Correction on the SARS website for more details.
• Request remission of penalties and interest, if applicable. The school will not be held liable for penalties or interest in this regard, as the law was amended retrospectively

Filing season updates

Just a reminder that taxpayers can only start submitting returns from the 13th of July. Auto assessments will however be available from the 1st of July. SARS is expecting to issue 6 million auto assessment for the 2026 filing season, so please be prepared!

Notice 7602 was issued on the 19th of June to extend the date taxpayer have to respond to auto assessments to align with the end of the non provisional taxpayer filing season, aka 23 October 2026. Full notice here: https://www.sars.gov.za/legal-lsec-tadm-pn-2026-05-notice-7602-gg-54853-public-notice-ito-s956-extending-date-of-automatic-assessment-19-june-2026/

In addition, SARS sent out this notification:

Some taxpayers may have received a notification on eFiling about a historical income-tax assessment. If you received such a notice, you do not need to do anything. The notification relates to a past tax period and does not affect your 2026 tax return or the current filing season. The notice was generated as part of a data synchronisation process. If your tax return for the relevant period had already been submitted and processed, you can ignore the notification.

Then finally, these are the changes that have been made to the filing season process for individuals

• Less capturing, more prefilled data: Some of your information (like investment income) will already be filled in on your ITR12 to save you time.
• Simpler, easier-to understand questions: The form has been simplified with fewer repeated questions and clearer wording to help you complete it correctly.
• Better guidance on residency status: New questions and date fields will help you provide the right information about your residency.
• Easier medical aid selection: A dropdown list of approved medical aid schemes will help you choose the correct option and avoid mistakes.
• Use WhatsApp for quick and easy access: You can now receive your Notice of Assessment (ITA34) if you are auto assessed and don’t use email or eFiling. You can also get your Notice of Assessment (ITA34) and Statement of Account (SOA) on WhatsApp and even upload supporting documents directly through WhatsApp.
• Improved eFiling experience: The Income Tax Return (ITR12) has been updated with a new look and feel to make navigation easier. You will also find quick links to your Notice of Assessment (ITA34), and clearer messages if your return is overdue.
• Fewer verification issues: A new declaration alert questionnaire will help identify and resolve issues earlier, reducing the chances of your return being selected for verification.