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Can't pay your Vat? Here are six steps SARS recommends you follow today...

by , 02 February 2015
You've just done your Vat calculation and realise you owe SARS money, but can't afford to pay this month.

So what do you do? Do you hit cancel instead of submit on that Vat return and hope SARS doesn't find out?

Sadly that's not an option! SARS won't just let you off the hook. It will still expect the Vat payment and add hefty fines and penalties for the late submission of your Vat return too!

But there's a lifeline SARS gives Vat vendors in situations like this. That's why I'm writing to you today. Follow these six steps SARS recommends you take if you can't pay your Vat in this tax period...

If you see on your Vat return that you must pay SARS, but you simply can't afford to, SARS recommends these six steps. Take this seriously. SARS won't just let you off the hook!

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Getting your VAT refund from SARS just got harder…
 
A small administrative mistake is all it takes for SARS to have the right to withhold your refund.
Put a simple zero in the wrong place on the new VAT return could and you can forget about getting even a cent of your money back.
Make sure this never happens to you by filling in the new VAT return 100% correctly every, single time. 

********************

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... 



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