SARS Verification and Audit: What to Expect and How to Respond

SARS does not automatically accept every return as filed. It selects returns for verification or audit using risk profiling and data matching - in 2023/2024 SARS issued over 1.7 million audit and verification requests to South African taxpayers (SARS Annual Report 2023/24). Knowing how each process works - and what SARS expects from you - lets you respond correctly the first time.

Key Takeaways

Verification is a document request - you typically have 21 business days to respond via eFiling or SARS Online Query System.

An audit is a formal, thorough examination that may cover multiple tax years.

If SARS raises a revised assessment you disagree with, lodge a Notice of Objection within 30 business days.

Keeping eFiling contact details current is critical - a request you miss still has a deadline.

Verification vs audit

Verification is the more common of the two processes. After you file, SARS issues a letter through eFiling or the SARS Online Query System (SOQS) requesting specific supporting documents for amounts on your return (SARS: Dispute and Appeals). Common triggers include:

Home office deductions.
Large out-of-pocket medical expense claims beyond the tax credit.
Retirement annuity contributions.
Business or rental income and expenses.
Significant year-on-year changes in income or deductions.
Large capital gains or unusual asset disposal proceeds.

Verification is document-based. You upload the required certificates, invoices, and proof through eFiling or SOQS within the specified deadline. No in-person meeting is usually required.

Audit is a more formal and thorough examination of your tax affairs under the Tax Administration Act (legislation.gov.za). An audit may cover a single year of assessment or multiple years, may involve a meeting with a SARS inspector, and may extend beyond the specific return that triggered it. SARS issues a formal notification of audit specifying what is being examined and your rights during the process.

How SARS notifies you

SARS communicates through four channels:

Your eFiling inbox - check this regularly after filing, not just once.
SMS to your registered mobile number.
Email to your registered address.
Post to your registered address (less common, but still used for formal notices).

Keeping your contact details current on eFiling is not optional - a verification letter you don’t see still has a response deadline. If you miss it because SARS sent it to an old email or phone number, the consequences are yours to manage.

Responding to a verification request

Read the request carefully. It lists exactly which line items are being queried and what documents are required. Don’t submit everything - send what was asked for.
Gather your documents. Match each query to specific certificates, invoices, bank statements, or other proof. Documents must be readable copies.
Upload through eFiling or SOQS before the deadline. Most verification requests set a 21-business-day window, but the specific letter states the deadline for your case - some are shorter.
Keep copies of everything submitted and the upload confirmation SARS generates. You need this if there’s a follow-up.

A late or incomplete response often results in the return being assessed without your input, potentially disallowing the queried claims.

If SARS issues a revised assessment

After reviewing your documents, SARS may:

Accept your return as filed - no change, and any refund due is processed.
Raise an additional assessment: a SARS-issued assessment adding tax, interest, or penalties.
Issue a refund if the review confirms you overpaid.

If you receive a revised assessment that you disagree with, you have a specific window to act. Ignoring the assessment does not make it go away - it becomes final once the objection period closes.

Disputing an outcome: objection and appeal

The Tax Administration Act sets out a formal dispute resolution process (SARS: Dispute and Appeals):

Step 1 - Request reasons (within 30 days of the assessment).
Before objecting, you may ask SARS to provide written reasons for the assessment. This helps you understand what was disallowed and frame your objection clearly.

Step 2 - Lodge a Notice of Objection (within 30 business days of the assessment).
File the NOO on eFiling. Attach all supporting documents and a clear explanation of why you disagree with the assessment. Missing this deadline makes the assessment difficult to reverse.

Step 3 - SARS reviews and issues a decision.
SARS must respond to your objection within the prescribed time. If they disallow it, you can appeal to the Tax Board (for smaller amounts) or the Tax Court (for larger or more complex matters).

Step 4 - Alternative Dispute Resolution (ADR).
Before escalating to the Tax Board, you may request ADR - a less formal process where a SARS facilitator works with both sides to reach agreement. ADR resolves many disputes without the cost and delay of formal proceedings.

Common mistakes when responding to SARS

Missing the response deadline. The verification query stays open and the return may be assessed without your documents. Late responses are sometimes accepted, but SARS is not required to accept them.

Uploading unclear or incomplete documents. SARS reviewers need legible, complete copies - a blurry phone photo of a crumpled receipt will be rejected. Scan documents properly.

Not keeping a copy of what was submitted. If SARS asks a follow-up question, you need to know exactly what you already provided.

Ignoring a revised assessment. You have 30 business days to object. Missing this window makes the assessment final and binding, even if it’s wrong.

Frequently Asked Questions

What typically triggers a SARS verification request?

Common triggers include home office deductions, large out-of-pocket medical expense claims, retirement annuity contributions, business or rental income, and significant year-on-year changes in declared income or deductions. SARS also uses risk-profiling algorithms to select returns for review - some verifications are random rather than triggered by a specific line item.

How long do I have to respond to a SARS verification request?

The standard response window is 21 business days from the date of the request, but the specific letter you receive states the deadline for your case. Some SARS requests set shorter deadlines. Missing the deadline can result in your return being assessed without your documents, potentially disallowing the claimed amounts.

Can I dispute a SARS assessment I disagree with?

Yes. Lodge a Notice of Objection (NOO) on eFiling within 30 business days of the assessment date. Before objecting, you can request SARS’s written reasons for the assessment. If your objection is unsuccessful, you can appeal to the Tax Board, the Tax Court, or request Alternative Dispute Resolution as a less formal step.

What is the difference between a SARS verification and a SARS audit?

Verification is a document request - SARS asks you to upload specific supporting documents for amounts on your return. An audit is a formal, more thorough examination under the Tax Administration Act, which may cover multiple tax years, involve meetings with a SARS inspector, and extend beyond the specific return that triggered it.

Sources

SARS: Dispute and Appeals - objection process, ADR, Tax Board, and Tax Court procedures
SARS Annual Report 2023/24 - audit and verification volumes
Tax Administration Act 28 of 2011 - legislative basis for SARS verification, audit, and dispute resolution

This guide is for general educational purposes. SARS processes and deadlines can change - verify current procedures with SARS or a qualified tax practitioner before responding to a notice.