Filing a tax return might sound like a complicated task, but it’s something that can really work in your favour—especially if you’re looking to get some money back. Whether you’re wondering how to claim tax return for the first time or a bit unsure about the whole process, don’t worry!
In this guide, we’ll walk you through the ins and outs of the South African Revenue Service (SARS) for tax return, from who qualifies for a tax refund to the step-by-step process of claiming your tax rebate. By the end, you’ll have all the info you need to make sure you’re not leaving money on the table.
What Is a Tax Return and Why Should You File One?
A tax return is essentially a form you submit to the South African Revenue Service (SARS) to report your income, deductions, and any taxes you’ve already paid. It helps SARS determine whether you’ve overpaid or underpaid your taxes for the year. If you’ve paid too much, you could be due for a refund (yay!)
Filing your tax return is a legal requirement if you earn above a certain threshold—skipping it could result in penalties or fines. More importantly, it helps ensure you don’t miss out on any refunds or rebates you may qualify for, such as deductions for medical expenses, retirement contributions, or solar investments. A well-filed tax return can also work in your favour when applying for loans, as many banks and lenders check tax compliance before approving credit.
Who Is Eligible for a Tax Refund?
Not everyone who files a tax return is guaranteed a refund, but if you’ve overpaid taxes or qualify for certain deductions, you might be in luck. Here’s a rundown of who could get money back from SARS:
Employees with Overpaid Tax (via PAYE)
If you’re employed and your employer deducts tax from your salary (PAYE), you might be owed a refund if they’ve deducted more tax than necessary. This often happens if your earnings fluctuate.
Self-Employed or Contract Workers
If you’re self-employed or a contractor and you’ve overpaid your taxes (or haven’t claimed all your eligible deductions), you could also be in line for a refund when you file.
Those Earning Below the Tax Threshold
If your income is below the tax threshold for the year, but tax has been deducted from your salary, you could get a refund when you file your return.
People Who Qualify for Tax Rebates or Deductions
Even if you’re not overpaying taxes through PAYE or provisional tax, you could still qualify for a refund if you’re eligible for tax rebates and deductions. These can include:
- Medical Expenses: If you’ve paid for medical costs that exceed a certain threshold, you might be eligible for a rebate.
- Retirement Fund Contributions: Contributions to retirement savings (like a pension or provident fund) can be deducted from your taxable income.
- Donations to Charity: If you’ve made donations to registered charities, you may be eligible for a tax deduction.
- Solar Panel Rebate: Did you know that if you’ve installed solar panels (new and unused) between 1 March 2023 and 29 February 2024 to save electricity bills, you can claim 25% of the cost, up to R15,000, as a tax rebate? This applies to personal installations only.
Those Qualifying for VAT Refund
There’s a VAT refund in South Africa for qualifying purchasers who pay 15% VAT on goods. If you’re a tourist, foreign diplomat, non-resident, or foreign enterprise, you can claim a refund for VAT paid on goods when you leave the country or export the goods. Your cartage contractor can also submit the claim on your behalf.
How Do You Get a Tax Rebate? (Step by Step)
Claiming your tax rebate is easier than it sounds, especially when you have the right steps in place! If you’re eligible for any rebates or deductions, whether for medical expenses or solar panel installation, you can follow these clear steps on how to get a tax rebate:
Step 1: Register and Log into SARS eFiling
Before you start, make sure you’re registered on the SARS eFiling platform. You can register online on the SARS website if you haven’t already. If you’re a first-time user, follow these steps:
- Go to the SARS eFiling website (https://www.sars.gov.za/).
- Select Register at the top right of the page and enter your personal and contact details.
- Once registered, use your username and password to log in.
- Depending on your registration status, you may need to verify your identity, which can involve a biometric check if you’re a South African citizen or submitting additional documents if you’re a non-South African.
Step 2: Complete Your Tax Return (ITR12)
Once you’re logged in, it’s time to complete your Income Tax Return (ITR12). This is the form where you report your income, claim deductions, and apply for any tax rebates. Here’s how to do it:
- Navigate to the ITR12 form: Locate your Income Tax Return (ITR12) by navigating to “Returns Issued” > “Personal Income Tax (ITR12)” on the left side of the website, and then select the tax year (2024) on the right side.
- Enter your income details: Provide accurate information about your earnings from salaries, freelance work, investments, or other sources.
- Include eligible deductions: This may include retirement annuities, medical aid contributions, or business-related expenses if you’re self-employed.
- Claim applicable rebates: If you qualify for incentives like the solar panel tax rebate, you’ll need to provide your proof of purchase, including invoices and installation details.
- Double-check all information: Review your form carefully to ensure there are no errors or missing details that could delay processing.
Step 3: Claim the Solar Panel Tax Rebate (If Eligible)
Installing solar photovoltaic (PV) panels is one of the best and most sustainable ways to cut down on your prepaid electricity plans. If you’re a taxpayer who installed new solar panels at your primary residence during the qualifying period (1 March 2023 to 29 February 2024), you could be eligible for the 25% solar tax rebate.
To claim, the panels you install must also meet the following technical specifications:
- Minimum Capacity: Each panel must have a minimum capacity of 275 watts (W) per panel.
- Connection to Distribution Board: The panels should be part of a system connected to your home’s distribution board.
For instance, if you invest in the EcoFlow DELTA Pro Solar Generator, which comes with the DELTA Pro portable power stations that connect directly to your home circuits via the Smart Home Panel, plus the EcoFlow 400W (>275W) portable solar panels, you’ll be eligible for the solar tax rebate.
If you meet the eligibility criteria, you can get the solar rebate when filing your Income Tax Returns (ITR12) for the 2024 tax year. Here’s how to claim a tax rebate on solar panels:
When completing your ITR12, include the total cost of the solar panels you’ve installed during the year. You can claim 25% of the total cost of the panels up to the maximum rebate of R15, 000.
For instance, the EcoFlow 400W Portable Solar Panel is priced at R8,999 per panel. It features a high conversion rate of up to 23%, so it captures sunlight efficiently. Plus, with an IP68 waterproof rating, it’s tough enough to withstand all kinds of weather. If you install 8 panels to get a 3.2 kW setup for your home, 25% of the total cost would be R17,998. Since the maximum allowable rebate is R15,000, you can only claim R15,000.
SARS will calculate the rebate for you based on the information provided. You do not need to manually calculate the rebate or apply the percentage. However, you do need to keep the following documents ready for verification:
- Electrical Certificate of Compliance (COC): Must include the certificate number, electrician’s details, and the wattage of panels (minimum 275 W).
- Invoice and Proof of Payment: Showing the total cost, number of panels, and wattage.
- Proof of Installation: Date of installation and first use (must be within the qualifying period).
- Proof of Primary Residence: Ownership or rental agreement, or utility bills.
Step 4: Submit and Track Your Refund
Once everything is filled out and double-checked, submit your return before the deadline. SARS will assess your submission and determine whether you’re due for a refund. You can track the status of your refund directly via the eFiling platform. If approved, the refund will be deposited into the bank account you have linked to your eFiling profile.
Conclusion
Now that you know how to claim tax return, you’re in a great position to make the most of the process. It’s not just about meeting your legal responsibilities—it’s also a chance to get back some of the money you’ve overpaid.
For homeowners who have recently invested in solar panels and power stations to save on electricity bills and stay powered during load shedding, complete your ITR12 with the information of your solar system to get the tax rebate of up to R15,000!
FAQs
What supporting documents do you need to claim the solar panel tax rebate?
To claim the solar panel tax rebate, you need:
- An Electrical Certificate of Compliance (COC) with installation details.
- Invoices and proof of payment showing the number of panels, cost per panel, and wattage.
- Proof that the installation is of first use, within the qualifying period, and at your primary residence (such as a utility bill or rental agreement).
Can I claim the solar tax rebate if I am renting a home?
Yes, you can claim the solar tax rebate if you are renting. However, only the person who paid for the solar panels can claim the rebate, whether it’s the tenant or the landlord.
Does SARS automatically refund?
No, SARS does not automatically refund taxpayers. You must submit your tax return (ITR12), and if you qualify for a refund, SARS will process it. Additional verification may be required before the refund is paid out.