Two simple steps you can take right now to deal with ‘The VAT201 letter’ every Vat Vendor dreads

Shanice Naidu,, 28 Oct. 2014

Tags: vat201, vat refund, vat201 letter, vat vendor

“Thank you for submitting your VAT201 declaration for the X tax period. Please note your VAT201 return has been identified for review as part of the VAT assessment verification process, due to the fact that variances have been detected in this submission…”

Sound familiar?

And here’s the scary part…

“Please carefully review your VAT201 declaration against your relevant supporting documents, correct any errors and submit a request for correction.”

Get this wrong and you could end up paying 200% in penalties. But you don’t need to worry… I’m going to show you two simple steps to take if you are ever presented with a VAT201 letter.

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The dreaded SARS VAT201 letter
VAT201 Letter from SARS

Simply follow these two steps to deal with this...

Step #1: Don’t panic!

SARS is trying to tell you your return varies too much when compared with the pattern established by your previous returns, e.g. this may relate to an increase in input tax deductions you’ve claimed. 

As a result, the return has been ‘flagged’ by the computer and draws SARS’ attention to it. The taxman wants to know where the deviation comes from.

Step #2: Double check the information you’ve submitted

You must refer back to your source documents and books to make sure you haven’t made an error in completing the return. 

Also, it’s a good idea for management to get involved and pay closer attention to what’s going on with Vat

For more help on correcting your Vat return, check out the Vat Refund Accelerator. It contains everything you need to do your Vat return correctly.

Until next time

Shanice Naidu,
Product Manager: The Vat Refund Accelerator

P.S: Did you know by law, SARS has to pay you your Vat refund within 21 days! So why doesn’t it? Find out how to get your Vat refund from SARS within 21 days every time...

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