Did you miss the deadline to pay your Vat to SARS? Use these four tips to comply and avoid further penalties

Simangele Mzizi, Fsp Business, 25 Dec. 2014

Tags: late vat payments, vat payments, sars, vat payments, paying vat

As a Vat vendor, you have a duty to make accurate and timely Vat payments.

But if you’ve missed the deadline you can still comply and get back on SARS’ good books.

Since this is easier said than done, we recommend you use these four tips to comply so you can avoid further penalties when it comes to your Vat payments.

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Using these four tips will help you comply when it comes to your Vat payments

#1: Keep your current Vat returns and payments up-to-date.

This way, SARS won’t penalise you and charge you interest. It also shows SARS you’re doing your best to be compliant.

#2: Pay SARS the monthly interest you owe it.

Even if you’re going through a tough time financially, always try to pay any Vat that’s in arrears by the last day of the month. If you pay the next day, SARS will charge interest for the whole month!

Also keep in mind that when you pay all outstanding Vat, penalties and interest, SARS tends to be lenient when crisis hits and you make a late payment.

For example, if your late payment wasn’t intentional (there’s a strike, a big debtor let you down or your accountant was ill) and you’re usually tax compliant, SARS will usually remit the penalties. But it won’t remit the interest.

#3: The Practical Vat Loose Leaf Service says if SARS remits the penalty, it won’t usually refund it. This means it will show as “unallocated payments” on your account statement for that tax year.

You must write to SARS “Accounts Maintenance” and ask them to allocate the amount to a future tax period. Then reduce the payment for that tax period accordingly. This way, your Vat affairs will be up-to-date.

#4: When you pay off outstanding Vat, penalties and interest, always try to clear particular tax periods in full. Otherwise, SARS will take the payment for penalties and interest. This means interest will continue to run on Vat still due.

It’s in your best interest to comply when it comes to your Vat payments

According to the Practical Vat Loose Leaf Service, more than 250 South African vendors are in jail for not obeying Vat law!

If you don’t take time to comply when it comes to your Vat payments, it won’t just end with paying interest and penalties. SARS will prosecute you.

Now that you have the know-how, make sure you comply ASAP.

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