Will SARS have mercy if you don't pay Vat on time?
Your company's fallen on hard times or your accountant is a scatterbrain, and you haven't paid your Vat on time. What do you do, and will SARS have mercy on you? Read on and find out...
This is hardly a shock, but SARS doesn't care about the reasons why you didn't pay your Vat before the due date reflected on your Vat return!
Certainly there may be extenuating circumstances – but whether you were held up at the bank by armed robbers, or simply missed the deadline because life got in the way, all that matters is you're upfront about it and you make a plan. 231 Sizzling Vat Tips
recommends these steps when your Vat payment is overdue…
Make a plan to pay overdue Vat as soon as you can
Don't just ignore it and hope it will go away! You must approach SARS and make a plan to pay them the money you owe. Usually they will recommend you pay in installments. Review your budget and make absolutely sure the installments amounts are reasonable so you don't fall behind again.
Plead your case against Vat overdue penalties after you're all paid up
SARS will add penalties and interest to your overdue Vat amount, but don't even bother arguing with these numbers until you've paid your overdue Vat.
Look at it from SARS' point of view, if someone's already missed a payment deadline, why would you do them any favours and let them get away with it? They must impose the penalties to make business owners take the deadlines seriously.
Once you've paid the balance, you can respectfully plead your case and explain to SARS the circumstances that made you miss the deadline. Paying back your debt puts you in a far more credible position with SARS. If you're lucky, they might even waive a portion of the penalty fee.
Note: 5 of 2 votes