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Ask SARS to suspend your payment in two simple steps

by , 01 May 2017
When it comes to a VAT dispute with SARS, do you know when you should pay, or if you should pay the disputed taxes at all?

You need to get this right, or you'll incur unnecessary penalties.

You can ask SARS to suspend your payment, with a payment suspension request. Let's look at an example.

Example
 
Furniture Friend gets a VAT assessment for R84 000, including penalties and interest from SARS.
 
Ferdie, the owner of Furniture Friend, doesn't agree with this amount. And he lodges an objection against the assessment.
 
But as he's concerned about the R84 000 SARS wants, he asks SARS for a payment suspension, until the objection is finalised.
 
But can he do this?
 
Here's what the law says about outstanding payments on assessed taxes…

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Declaring zero-rated supplies on your VAT return is an immediate trigger for a SARS VAT audit
 
If you deal with:
  • Direct exports;
  • Petroleum, diesel or illuminating paraffin
  • Agriculture;
  • Mining;
  • Goods temporarily admitted into South Africa; and
  • Foreign goods or services…
 
Zero-rated VAT affects you and you 'will' trigger a VAT audit!
 
But you don't have to worry. 
Here's how to prove your zero rating is correct…

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The 'pay-now, argue-later rule'
 

One of the most common terms, when it comes to owing SARS money because of an assessment, is the pay-now, argue-later rule.
 
It means you have to pay your VAT debt before SARS finalises or resolves your VAT dispute. So, the obligation to pay VAT, which arises on an assessment, isn't automatically suspended by an objection or appeal.
 
There are two simple steps you need to follow when it comes to asking SARS to suspend your payment.
 
We cover these in full detail in your next
Practical VAT Handbook update, which will arrive on your desk soon.
 
If you're not subscribed to the
Practical VAT Handbook, subscribe here now.

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