SARS warning for South Africans who have left the country

South African expatriates risk being locked out of their SARS eFiling profiles – and facing penalties or compliance issues – if they fail to update outdated contact details.

Tax Consulting SA’s SARS compliance specialist, Alex Mahundla, explained that many South Africans living abroad do not realise the importance of updating their details on the South African Revenue Service’s (SARS) system.

He warned that outdated contact information, such as old mobile numbers or inactive email addresses, can block access to their eFiling profile, often with serious consequences.

“Without access, you risk missing submission deadlines, critical login One-Time PIN (OTP), tax notifications, and compliance reminders, which can lead to unnecessary penalties and stress,” Mahundla said.

“As SARS is tightening digital security protocols, it is essential for both tax residents and non-resident taxpayers overseas to keep their contact and login details at the tax authority current.”

A frequent misconception among expats, Mahundla said, is that moving abroad somehow pauses or simplifies their tax responsibilities.

“It does not. SARS still requires up-to-date contact details and secure login credentials for your eFiling profile,” he said.

“The problem is that many still have contact details, set up years ago while still in South Africa, which are now defunct. Once locked out of eFiling, fixing it can be far harder than most expect.”

SARS continues to upgrade its systems for availability, enhanced security and compliance monitoring. One recent change is that expatriates can now update their mobile number and email directly from the login page.

“As simple as it sounds it can pose problems for those no longer using South African contact numbers or email accounts,” he said.

“Where you find yourself attempting this update after you have left the country, you will hit various proverbial walls preventing you if you do not have access to South African contact details you once used.”

Changes for expats

Another change, Mahundla explained, is that SARS now requires two-factor authentication to log in, using an OTP sent to a taxpayer’s registered contact details.

“If your registered contact details are not updated before departing the country, you will not receive the OTP, will not be able to log in and locked out of eFiling profile, with very little recourse,” he said.

“This is not just an inconvenience – it is a risk to your tax compliance. If a Letter of Demand or compliance notice is issued while you are locked out, penalties and interest can accrue, and other compliance actions may follow.”

According to Mahundla, certain processes also now require biometric authentication, such as facial recognition.

“While this improves security, it can cause huge frustration for expatriates abroad if devices do not support biometrics or where their listed details with SARS do not match those provided,” he said.

The final change relates to document uploads and rejections. When taxpayers update their details, SARS has the right to request supporting documents.

“These uploads are sometimes rejected without explanation, leaving you stuck with a case number and a tedious process to try and rectify the situation,” he said.

Small oversights lead to big problems

“We often see taxpayers run into difficulties when using the ‘Update Contact Details’ function on eFiling,” Mahundla said. While it appears to be a quick fix, it can lead to complications.

This is especially the case if the taxpayer never registered an eFiling profile before or have not logged in for several years

In these cases, Mahundla explained that SARS may not have sufficient information to verify someone’s identity.

The verification process is rarely straightforward and more often than not, SARS will be unable to verify the taxpayer’s details, and they will encounter the rejection outcome.

If rejected, taxpayers will see a notification asking them to visit their nearest SARS branch to complete the eFiling registration process. Mahundla said this can happen after waiting days or even weeks for feedback.

For expatriates, the instruction to visit their nearest branch is often impossible at short notice. If taxpayers cannot access their SARS profile, they cannot –

• File tax returns
• Receive SARS correspondence
• Respond to compliance notices
• Claim or receive refunds
• Update their tax residency status

“When South Africans move abroad, their to-do list is long – visas, housing, banking, and adapting to a new culture,” Mahundla said.

Amid the commotion and disruption of relocating, it is easy to forget to update security details with SARS. Unfortunately, this small oversight can lead to big problems down the line.