In respect of a VAT Payment over R5 mil- what type of payment method is the PASA Limitation on?
02 March 2015
Posted by: Author: SAIT Technical
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.
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.