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THIS is the ONLY time SARS will agree to reduce a penalty for a late Vat payment

by , 13 May 2014
If you didn't make your last Vat payment on time, there's some good news.

The Vat Act (Section 39) allows SARS to remit or reduce penalties for late payments.

But, you'll only get a reduction in penalties if you meet this ONE requirement! Read on to discover what it is...

SARS will reduce penalties for late Vat payments under this one condition

The Practical Vat Loose Leaf Service says SARS can relax its rule about levying penalties and interest for late Vat payment if:

  • The commissioner is satisfied your late payment wasn't part of an intentional ploy to avoid paying your tax.

When he's convinced you weren't trying to evade tax, he'll remit or reduce the 10% penalty you would otherwise be charged.

But to do that you have to meet these two conditions first…

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Errors in Vat invoices could cost you thousands!

Are there any inaccuracies in your Vat invoices? You may be charged a very high penalty!

Click here to find out how to make sure your Vat invoices are 100% legal.

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SARS will remit or reduce your interest if you meet one of the following two conditions:

  • There's no resulting financial loss to the fiscus (including loss of interest). The Practical Vat Loose Leaf Service says this takes into account both output tax and input tax relating to the supply on which the interest will be charged; or
  • You didn't benefit financially by making the late payment.

Just remember: If you made your Vat payment late and received the 10% penalty, the onus is you to make representations to your SARS office so your penalty will be reduced.

If SARS refuses to reduce your penalty, you have a right to lodge an objection and appeal.

While SARS is empowered to reduce penalties for late Vat payments, the best thing you can do is to make your Vat payments correctly and on time so you can save yourself time and avoid unnecessary fines and penalties from the start.

 


 




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