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In respect of a VAT Payment over R5 mil- what type of payment method is the PASA Limitation on?

02 March 2015   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

Q: We have a VAT payment to SARS that is over R5 million. We are aware that the PASA Limitation of R500 000.00 is only applicable to cheque payments/EFT. However, a SARS agent advised me that Efiling has a R5 million limitation for payments. We normally pay our VAT via credit push.

Should we do two payments for the one VAT return? Will the credit push option allow us to alter the amount with the second payment? Please could you advise on how payment should be made?

A: It is our understanding that the R5m PASA limitation only applies to EFT payments and not Efiling credit push transactions (See attached Standard Bank Brochure). This seems to be confirmed in the SARS VAT 404 guide at 9.5 that eFiling is not affected by the PASA limits, only the other payment methods.

http://www.sars.gov.za/AllDocs/OpsDocs/Guides/LAPD-VAT-G02%20-%20VAT%20404%20Guide%20for%20Vendors%20-%20External%20Guide.pdf   

http://secure.businessonline.standardbank.co.za/bebhelp/operational_regulations.pdf

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 decision.


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