Three Vat payment methods your company can use to avoid penalties
It's your responsibility to make sure SARS receives your Vat payments correctly and on time. If you don't you'll have to pay a 10% penalty not to mention additional interest for each month your payments are late. Read on to discover three Vat payment methods that'll save you time and ensure you avoid unnecessary fines by SARS.
There's one thing SARS won't tolerate late: Late Vat payments.
They come with a hefty fine of 10% percent as well as 'interest at the existing rate, each month for being late with your payment,' says the Practical Vat Loose Leaf Service.
But you can ensure you never pay a cent in additional fees because SARS has made it much easier for you to make your company's Vat payments.
You just need to choose the method that works best for your company…
Make your company's Vat payments on time using these three payment methods
Use eFiling – it's free and fast. SARS's online eFiling facility lets you receive, complete and submit your Vat returns and make your Vat payments for free. 'It's the fastest, most reliable and secure method to make these payments,' says the Practical Vat Loose Leaf Service. To use eFiling, log on to the website at www.sarsefiling.gov.za to register so you can complete your Vat admin transactions.
Make an Electronic Funds Transfer (EFT) through Internet banking. For your convenience, SARS' previous bank account numbers have been replaced with unique beneficiary account numbers. Contact your bank's call centre for information if you use Internet banking to make payments to SARS.
Make a deposit at a bank. SARS' banking details are pre-printed on your Vat return. You can pay SARS in cash, by cheque or at any bank branch.
Remember to keep your keep your proof of payment safe for five years once your SARS payment has gone through. This is in case there's a query or error in allocating your payment and SARS decides to audit you.
Using one of these Vat payment methods will ensure you pay your company's Vat on time and avoid SARS penalties.
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