Did you know that you're an agent?
The fact that you're a Vat vendor makes you an agent for the state.
And that means the Vat you collect is never part of your turnover – it belongs to the government.
Section 7(1) of the Vat Act makes it clear that the tax levied (in other words the Vat) is for the benefit of the National Revenue Fund. That's why there are heavy penalties for paying Vat incorrectly or late as this translates into interest lost for the government.
It's for this reason that you're allowed to apply for amnesty when it comes to overdue Vat account payments.
But, there are certain terms and conditions to doing this.
Here's what you need to know amnesty for overdue Vat account payments
If you owe the taxman money from previous years and you've never applied for any previous amnesties, go to SARS and enquire about a settlement.
Note: If you and SARS reach an arrangement that you'll pay the amount in installments, stick to the agreement.
If you don't, SARS has the power to:
When it comes to overdue Vat account payments, 'don't lose what you've spent great amounts of time and energy to build up, rather approach SARS and see what can be arranged for you,' cautions the Loose Leaf Service.
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