Here's how the new Customs Act will affect your business
First and foremost, you need to know that if you haven'tsubmitted your registration forms within those 30 days once the Act comes into effect, existing customs registrations will no longer be valid!
This means that your company risks its goods being stopped at the borders until such time as a new registration application has been approved by SARS..
Also, a customs broker or registered agent may not make an application on a companies behalf.
Until this moment, SARS has not given any indication of exactly how it intends to accommodate the large volume of applications that will be received.
However, is has said that the 30 days applies to making the application, not processing it. SARS will have as long as it requires to do the actual processing
Down below you'll find four penalties SARS can charge you for if you don't comply with the Vat
Act! Plus five bonus tips to avoid SARS Vat
In case you don't comply with the Vat
Act, SARS will do its job and may charge you with the following four penalties.
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Use this ten-step action plan to ensure you get your Vat refund from SARS on time, every time
Don't let SARS make you wait for your Vat
Claim your ten-step action plan now! And get your Vat refund within the allocated 21 days.
Here are the four types of penalties SARS charges for Vat Act non-compliance
1. Fixed amount administrative/non-compliance penalties
If SARS thinks you didn't comply with the Vat
Act, it can impose a penalty. SARS will base the penalty on the prescribed table of fixed penalties.
Make sure you comply with all your Vat
2. Percentage based penalty
In this regard, if you pay any of the taxes imposed under any Tax Act late, SARS will impose a percentage-based penalty. This is over and above any other penalty or interest that's already been levied.
3. Understatement penalty
If you're guilty of paying less tax
than you should have, you'll have to pay an understatement penalty in addition to the tax
4. Criminal penalties.
This applies if you don't comply with all tax
laws, all the time. SARS will prosecute you for noncompliance even for the smallest things.
Note that if you don't submit a return, you are potentially liable for all four types of penalties plus interest if you don't pay by the effective date.
Luckily, avoid SARS Vat
penalties is fairly ease
Use these tips to stay on SARS' good side:
1. Register for Vat
when you have to – i.e. when you your turnover is more than R1 million in any
2. Tell SARS when your postal, banking or representative's details change and keep the proof.
3. Submit your Vat
returns on time.
4. Assist SARS with their information gathering.
5. Manage your tax
debt liability properly.