Why Your SARS Refund Is Delayed – And What You Can Do About It

Many South African taxpayers eagerly await their SARS refunds, but delays often cause frustration. You can save time and stress by understanding why your refund might be delayed and what steps you can take to resolve the issue. This article explores the common reasons behind SARS refund delays and offers practical advice on how to speed up the process.

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Common Reasons for SARS Refund Delays

Several factors can cause your SARS refund to be delayed. Firstly, system glitches and high traffic volumes during peak tax season can overload SARS’s eFiling system, causing temporary downtime and slow processing times. For example, on the opening day of the 2025 tax season, many taxpayers experienced difficulties accessing SARS services due to system overloads.

Secondly, verification processes often delay refunds. When SARS selects your tax return for verification or audit, they may take up to 21 business days or even 90 business days if multiple tax years are involved to process your refund. They do this to ensure the accuracy of your tax return and prevent fraud.

Thirdly, incorrect or outdated banking details can hold up your refund. SARS requires valid and up-to-date banking information to deposit refunds. If your banking details are flagged for verification, this process can add up to 21 business days before payment is made. Additionally, refunds sent to inactive or closed accounts require correction, further delaying payment.

Fourthly, if you have outstanding tax returns or debts, SARS will withhold your refund until all outstanding matters are resolved. The debt equalisation process may deduct any owed amounts from your refund before releasing the balance.

SARS System Challenges Affecting Refunds

Systemic issues within SARS have been a major source of delays. The Tax Ombudsman has highlighted that refund delays are among the top complaints against SARS, with many taxpayers reporting withheld refunds without clear reasons. Furthermore, recent incidents where refunds were paid and then reversed due to validation processes affected thousands of taxpayers, causing confusion and delays7.

SARS has acknowledged these challenges and apologized for the inconvenience caused by system downtime and validation delays. They continue working to improve system stability and refund processing times.

What You Can Do to Avoid or Resolve Refund Delays

To minimize delays, ensure your banking details and contact information are accurate and up to date on SARS eFiling or the SARS MobiApp. This simple step can prevent unnecessary verification holds.

If SARS requests additional documentation for verification, respond promptly with complete and accurate information to avoid prolonging the process.

Also, ensure all outstanding tax returns are submitted. SARS will not process refunds if previous returns are missing or incomplete.

If you suspect your refund is unjustly delayed, you can contact the Office of the Tax Ombud for assistance. They handle systemic issues and individual complaints related to SARS delays.

Understanding SARS Auto Assessment and Refund Timelines

For many taxpayers, SARS automatically assesses tax returns using third-party data. Between 7 and 20 July 2025, SARS will notify eligible taxpayers by SMS or email about their Auto Assessment. After receiving the notification, SARS typically pays refunds within 72 business hours, provided no further verification is needed.

However, if your return is selected for audit or verification, expect longer processing times. Patience is essential, but staying informed and proactive can help you navigate delays more effectively.

Keep Your Details Updated

While SARS refund delays can be frustrating, understanding the reasons behind them and taking proactive steps can help you receive your refund faster. Keep your details updated, respond quickly to SARS requests, and ensure all tax obligations are met. For official updates and assistance, always refer to the SARS website or the Office of the Tax Ombud.

Stay patient and informed during the 2025 tax season to make the refund process smoother.