Four rules you need to know about tax periods so you can submit your Vat returns on time

43984, 12 Nov. 2014

Tags: sars, tax periods, vat returns

Once you register as a Vat vendor, you have a legal duty to submit your Vat returns on time.
If you don’t, SARS will hit you with penalties that run into thousands of rand. What’s more, it could audit your business.
The good news is you can avoid being on SARS’ wrong side.
It all starts with knowing these four important rules about tax periods…
Four ground rules you need to know about tax periods
Rule 1: SARS determines your tax period based on your business’ turnover in any 12-month period.
This means, not everyone has to pay Vat at the same time.
Basically, once you register as a Vat vendor, SARS sends you your notification with your Vat registration number and the tax period it expects you to submit your Vat returns in. You’re then responsible to submit these before the due date.
Rule 2: If your qualifying circumstances change, for example, your turnover drastically increases, you must tell SARS so it can move you over to the right Vat category and tax period.
Rule 3: Tax periods always end on the last day of a calendar month.
Make sure you diarise the dates SARS sends you once it approves your registration and stick to them to avoid penalties.
Rule 4: You must apply to SARS in writing to end your tax period on a different fixed day or date, but keep the following in mind:
  • You can only close your month off ten days before or after the last day of a month; and
  • You need SARS’ written approval before you change your official return dates.
Knowing these four tax period rules will go a long way in ensuring you submit your Vat returns on time.

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