Six steps SARS recommends you follow when you can't pay your Vat this month
Step #1: Don't forget your Vat return
Even if you know you can't pay, you must submit your Vat return(s)!
If you don't submit your returns on time, you're guilty of an offence and could face up to R80 000 fine or two years in jail (Section 58(d), Vat Act).
Step #2: Visit your SARS office
Go to the SARS client services centre in the area where you're registered for Vat. Tell the personnel at the service centre what your situation is.
Step #3: Give a detailed explanation of your circumstances
Propose how you plan to settle the amount
Set out the circumstances in writing, explaining why you can't pay the Vat and make a proposal as to how you'll be able to settle the amount in question.
Step #4: Give SARS your up-to-date financials
Prepare a statement of your income and expenditure and an up-to-date statement of your assets and liabilities.
Step #5: Get your paperwork in order
Make a copy of your latest bank statement and take it with to SARS.
Step #6: Consult with SARS
When you meet with SARS, explain your situation verbally and in writing. Submit your written explanation together with your statements of income and expenditure, assets and liabilities and latest bank statement.
Discuss your proposal for settling your account with the SARS official.
SARS will let you to settle your Vat account over a period of time. This period depends on your circumstances.
P.S. You could be missing on 34 input tax savings. To find out what they are simply follow this link...