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Follow these six steps if you can't pay SARS Vat

by , 13 March 2015
What to do when you can't pay SARS? There's a solution to a situation like this and you have to follow some steps so you won't be quilty of an offence and fined.

Here are the six steps that SARS recommends in case you are in a situation when you see on your Vat return that you must pay SARS, but you simply can't afford to!

Step #1: Don't forget to submit your Vat return

We recommend that you submit your VAT returns even though you can't pay!

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

You should go to the SARS client services centre in the area where you're registered for Vat and tell the personnel at the service centre what your situation is.

Step #3: Give a detailed explanation of your circumstances

In addition to all this, 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.

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Step #5: Get your paperwork in order

Make a copy of your latest bank statement and take it with you 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.

As a further advice, discuss your proposal for settling your account with the SARS official.

Know that SARS will let you to settle your Vat account over a period of time. Note that this period depends on your circumstances.

Just remember SARS won't give you time to settle your account, if you've ever been found guilty of evasion!

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