Biz Pulse SA

SARS Wins Constitutional Court Case on VDA Interest


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The South African Revenue Service (SARS) successfully appealed a lower court ruling in the Constitutional Court. The case concerned whether taxpayers could request interest remission on VAT liabilities after agreeing to pay interest within a voluntary disclosure agreement (VDA). The Constitutional Court ruled in favour of SARS, upholding the binding nature of VDAs and preventing potential destabilisation of the voluntary disclosure framework. This decision confirms that interest terms within VDAs are legally enforceable and cannot be unilaterally revised. The ruling protects the integrity of the VDA process and provides clarity for future tax compliance.

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Biz Pulse SABy David Pires