Deadline for the submission of VAT returns and payments
28 November 2014
Posted by: Author: SAIT Technical
Author: SAIT Technical
Date and Penalties. I see that for the last few months SARS automatically
charges penalties on the VAT returns if they are not paid before the 25th. This
causes me to write to SARS every month and ask them to write it off. Please can
you confirm if you have encountered the same problem with other practitioners.
A: You did not
indicate how the amount due is paid.
In terms of proviso (iii) to section 28(1) of the
Value-Added Tax Act a vendor registered with SARS to submit returns
electronically is deemed to have submitted the return and made payment within
the period ending on the twenty-fifth day if the vendor submits the returns and
makes full payment of the amount of tax electronically and in the prescribed
form and manner within the period ending on the last business day of the month
during which that twenty-fifth day falls.
If payment is for instance made by cheque after the twenty-fifth
day SARS would be entitled to levy a penalty.
The same would apply if the return is not submitted electronically.
The payment must also be in SARS’s bank before close of
business –for some banks this would mean before 12:00 on the last day. If not, SARS would also levy the penalty.
Disclaimer: Nothing in
this query and answer should be construed as constituting tax advice or a tax
opinion. An expert should be consulted for advice based on the facts and
circumstances of each transaction/case. Even though great care has been taken
to ensure the accuracy of the answer, SAIT do not accept any responsibility for
consequences of decisions taken based on this query and answer. It remains your
own responsibility to consult the relevant primary resources when taking a