When you complete your Vat return, you must approach it with full knowledge of the nature of what you're doing, and the consequences of errors or misrepresentations.
The Practical Vat Loose Leaf Service stresses that returns are legal and binding documents that constitute a declaration made to SARS.
Not only do you have to ensure that what's on your Vat return is correct, you have to submit your return on time. If you don't, you'll face consequences…
SARS will slap you with the following penalties if your Vat payment is late
For starters, failure to submit your Vat returns and to pay the Vat due is a criminal offence.
SARS calculates a penalty on late Vat payments at 10% of the tax amount payable. In addition, from the first day of the following month, interest at the prevailing interest rate will be calculated.
Remember, paying a penalty and interest comes directly out of your company's cashflow, and it's not tax deductable, so get your timing right.
If you're for any reason unable to submit your return or to pay the Vat due, you must make satisfactory arrangements with your SARS office before the due date.
Important: Go through your Vat return a second time before filing it. Then make sure you fill in the correct amounts.
And to help with this, make sure you remember these failsafe ground rules when you complete your Vat return.
We'd like to end this article by stressing again the importance of the return – remember it's a formal declaration made to SARS. It must be a truthful and an accurate account of the Vat status of your transactions for the tax period covered by the return. Always make sure you submit it on time.
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