South African Revenue Service (SARS)

Definition

The South African Revenue Service (SARS) is the national tax authority of South Africa responsible for collecting tax revenue and ensuring compliance with tax laws and regulations.

What is the South African Revenue Service?

SARS plays a key position within the nation’s fiscal system, overseeing a range of tax activities, managing customs and excise duties, and actively countering tax evasion and fraud.

One of SARS’ roles is collecting various taxes on behalf of the South African government, including income tax, value-added tax (VAT), corporate tax, customs duties, excise duties, and other fees. It implements tax policies and regulations set forth by the National Treasury to generate revenue for funding government expenditures and public services.

In addition to tax collection, SARS is responsible for administering customs and excise duties on imported and exported goods. It oversees customs clearance processes, enforces import and export controls, and collects duties and tariffs on international trade transactions. 

SARS administers the tax system by processing tax returns, assessing tax liabilities, issuing tax assessments, and collecting tax payments from individuals, businesses, and other organisations. It provides taxpayer services, such as tax registration, filing assistance, and taxpayer education programs to promote compliance and improve taxpayers understanding of their obligations.

SARS is empowered to enforce tax laws and fight tax evasion, fraud, and non-compliance through audits, investigations, and enforcement actions. It conducts risk-based compliance programs, targeting high-risk taxpayers and sectors to detect and prevent tax fraud. SARS collaborates with other law enforcement agencies and international counterparts to fight cross-border financial crimes.