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…
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.
SARS will remit or reduce your interest if you meet these 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
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.
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Has SARS raised an assessment against you?
Even if you don't agree with it, you must pay the amount due within 21 days…
And if you don't pay the amount on the assessment by the due date, your VAT account becomes overdue and SARS will take action to recover the debt.
Unless you apply for a payment suspension…
Here's how to apply for a payment suspension correctly and get the best chance of success…
SARS will remit or reduce your interest if you meet these two conditions cont…
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. That's why I recommend the Practical VAT Loose Leaf Service
so you can avoid this.
And I've just finished reviewing the upcoming issue of the Practical VAT Loose Leaf Service.
We're sending it to the printer this week.
In it, we give the five steps you need to take when you can't afford to pay SARS. Follow them all the way through and you won't have to face unnecessary fines and penalties.
We give you the second condition you need to meet for SARS to remit your penalties in the Practical VAT Loose Leaf Service.
If you want to receive your copy, add your name to the list before midnight tomorrow on 10 August 2016 here…
In chapter O04: Overdue VAT Accounts
of the Practical VAT Loose Leaf Service
, we give you a legal sample letter with all the information you need to approach SARS when your VAT account is overdue and you can't afford to pay it. Simply copy, edit and take with you to SARS, so you don't face unnecessary penalties and fines!