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What is the procedure for requesting the remission of VAT penalties?

09 April 2015   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

Q: A customer approached me to help with his VAT returns. He has not submitted VAT returns for 6 months. Please forward procedure on how to request SARS for remission of penalties & interest.

A: Please see chapter 10 of the VAT404 SARS Guide, which provides detailed guidance regarding penalties and interest for the non-submission of VAT returns. Point 10.4 specifically deals with the request for remittance of interest and penalties.

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

Typically the request to have interest and penalties waived would have to be in the form of a motivational letter. It must be dropped off at the nearest SARS branch. You could also send it via the SARS pcc email address for your region.

You’d need to motivate why the interest and penalties ought to be remitted, bearing in mind the specific criteria mentioned in the provisions cited in the SARS Guide and the Tax Administration Act. This is because there are certain remittance requests that SARS will not entertain.  

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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