What is the procedure for requesting the remission of VAT penalties?
09 April 2015
Posted by: Author: SAIT Technical
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.
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
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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
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