It's no secret that times are tough for most businesses. Debtors aren't paying on time, suppliers keep increasing their prices and new business uptake is slow.
But the bills keep piling up. And one of them is your VAT bill!
With these increasing costs, it's no wonder why many businesses can't afford to pay SARS their VAT.
If you calculate your VAT and find you simply can't afford to pay SARS, follow these five steps SARS recommends to take advantage of this lifeline.
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The one tool you need when you can't afford to pay SARS on time
Did you calculate your VAT, find out you have a large VAT bill and can't afford to pay SARS on time?
Don't worry… I've got the one tool you need to rectify this.
It will give you:
· The complete step-by-step process you need to take when you can't afford to pay SARS;
· A sample letter you can edit with all the information you need to include to approach SARS; and
· The six documents you need so you can avoid paying unnecessary penalties for late payment.
Simply follow this link
to claim legal Practical VAT Loose Leaf Service
and sort out your overdue VAT account.
Follow these five steps to a successful payment arrangement
The Tax Admin Act says you can agree with SARS, to pay off your tax debt in instalments (Section 167 and 168 of the Tax Administration Act).
This is when you can pay a specific amount of money over a period until you have paid off your entire VAT debt. There are certain criteria you have to meet first before SARS allows you to pay instalments.
Here's five steps to apply for your payment arrangement successfully.
Step #1: Put together a detailed explanation of your circumstances
Set out the circumstances, in writing, explaining why you can't pay the VAT. And make a proposal to SARS as to how you'll be able to settle the amount in question.
Here's a sample letter you can use
Step #2: Give SARS up-to-date financials
Prepare a statement of your income and expenditure and an up-to-date statement of your assets and liabilities.
Read on as I explain the final three steps…
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The three biggest concerns of VAT vendors in 2016
1. In January 2016 SARS changed what constitutes a valid tax invoice;
2. In March 2016 SARS changed how you deal with VAT when you import electronic services – so you'll be forking out more to SARS;
3. Non-compliance with the ever-changing VAT legislation means SARS won't hesitate to assess, fine and penalise you.
Well, we've got you covered! We'll keep you updated of all the VAT law changes, as they happen. And we'll also give you specialist tips and advice to protect you from SARS inspectors' fines and penalties.
Discover more here
Five steps to a successful payment arrangement cont…
Step #3: Get your paperwork in order
Make a copy of your bank statements for the last three months. This is proof to show SARS you can't afford to pay them right now.
There are six supporting documents
you can use to motivate your case to SARS and increase your chances of a successful outcome.
Step #4: Visit your SARS office
Go to the SARS client office – preferably the one in the area where you're registered for VAT.
Step #5: Consult with SARS
When you meet with SARS, explain your situation and submit your written circumstances together with your statements of income and expenditure, assets and liabilities and your latest bank statement. Discuss your proposal for settling your account with the SARS official.
There you have it. Now you know the lifeline you can use when you can't afford to pay SARS VAT.
But if you owe SARS VAT because you made a mistake on a previous VAT return, or they've assessed you, a payment arrangement won't help you. You'll need to follow a completely different process. I explain in detail the steps you need to take in the latest issue of the Practical VAT Loose Leaf Service
so you don't face unnecessary penalties and fines.
Turn to chapter O04: Overdue VAT Accounts
of the Practical VAT Loose Leaf Service
for a comprehensive step-by-step guide of what to do with your overdue VAT account payments. Try it out for yourself. And if you find it truly doesn't help you with your overdue VAT Account or VAT compliance, return it back to me within 30 days for a full money-back refund. No questions asked! You have nothing to lose. So start your money-back trial here.