SARS Question

[blunomore]

I am not intending to do this, but just out of curiosity: what does SARS do if a taxpayer who is supposed to submit bi-monthly VAT returns, fail to submit said returns?

Do they have a general fine/penalty or do they audit your financial affairs and then decide how much you owe and penalise on that amount .... or what??

 

[Bernie]

I am not intending to do this, but just out of curiosity: what does SARS do if a taxpayer who is supposed to submit bi-monthly VAT returns, fail to submit said returns?

Do they have a general fine/penalty or do they audit your financial affairs and then decide how much you owe and penalise on that amount .... or what??

I wouldn't mess with SARS. Rather talk to them and come up with a payment plan. If you fail to pay VAT, you will get warning letter and the next return will have a penalty on. If you still fail to pay you will be prosecuted. You have basically used "their" money for your own use. I know its very tempting to not put the VAT money away for when you need to pay it over because of cash flow problems. But it will always come back and bite you.

 

[The_Unbeliever]

Ja, speak to them and see if they will be able to assist.

Good luck!

 

[blunomore]

I wouldn't mess with SARS. Rather talk to them and come up with a payment plan. If you fail to pay VAT, you will get warning letter and the next return will have a penalty on. If you still fail to pay you will be prosecuted. You have basically used "their" money for your own use. I know its very tempting to not put the VAT money away for when you need to pay it over because of cash flow problems. But it will always come back and bite you.

I just asked out of curiosity. I have no intention to withhold payment

 

[Playboy]

As far as i remember from my studies, they give u a fine/penalty unless u paid within the days limit set aside for late payment. I'm not to sure of the specifics, to lazy to whip out the textbooks now, but if u really curious private me and i could have a look for you

 

[Smurfatefrog]

I am not intending to do this, but just out of curiosity: what does SARS do if a taxpayer who is supposed to submit bi-monthly VAT returns, fail to submit said returns?

Do they have a general fine/penalty or do they audit your financial affairs and then decide how much you owe and penalise on that amount .... or what??

I've dealt with clients who havent submitted for years, what they do is:
After 6 months or so you will get a letter requesting the return, ignoring this will get them sending more letters and then calling

As far as penalties goes, any late payment means a 10% penalty of the amount due + interest. The general idea for late submissions and payments is to make those amounts due as low as possible to lessen the penalty & interest, but if you make it obviously lower or a refund then your usual amount they will likely audit it

 

[blunomore]

I've dealt with clients who havent submitted for years, what they do is:
After 6 months or so you will get a letter requesting the return, ignoring this will get them sending more letters and then calling

As far as penalties goes, any late payment means a 10% penalty of the amount due + interest. The general idea for late submissions and payments is to make those amounts due as low as possible to lessen the penalty & interest, but if you make it obviously lower or a refund then your usual amount they will likely audit it

Thanks for the info.

I can see that I am screwed.

 

[Smurfatefrog]

You welcome, not sure what line of business you in but maybe try date your invoices just after month end (unless clients pay on specific terms) to help cash flow

or you can move onto receipts based VAT, which means you dont pay on what you invoiced, just on what you physically received

By saying years i meant the client hadnt submitted returns for years, the worst i had was no VAT or PAYE paid across from 2002 to 2007, and then came tax amnesty. He got away with sooo much

 

[blunomore]

You welcome, not sure what line of business you in but maybe try date your invoices just after month end (unless clients pay on specific terms) to help cash flow

or you can move onto receipts based VAT, which means you dont pay on what you invoiced, just on what you physically received

I am indeed currently submitting VAT on the receipt basis, but the issue came in when SARS refused us a tax clearance and one of clients refused to pay ......................

 

[Nicci]

I am still awaiting for SARS to give me my money back. I submitted 18 Nov on efiling - and the tax calculator said I was owed money by them. I then went in to change my banking details - and to date - no payment has been made into my account. All my friends however got their money back in about 2 days or so - so I dont know what is oging on there.

 

[Smurfatefrog]

I am indeed currently submitting VAT on the receipt basis, but the issue came in when SARS refused us a tax clearance and one of clients refused to pay ......................

A normal client asked for a copy of a tax clearance or are you dealing with tenders?
I reckon your client is cash strapped & just used that as an excuse hoping you wouldnt get a clearance

 

[blunomore]

A normal client asked for a copy of a tax clearance or are you dealing with tenders?
I reckon your client is cash strapped & just used that as an excuse hoping you wouldnt get a clearance

Well, since we consult for clients, we have no choice but to meet their requirements, else we do not get included on their vendor data base and thus wil not get paid.

Actually, quite a few of our clients (all private sector) have this requirement, the good AND the bad payers.