Value Added Tax (VAT), for most of the Small Business market is payable every second month, although certain exceptions do exist where businesses pay VAT on a monthly basis. The Receiver of Revenue (SARS) requires you to submit and pay your VAT liability for the preceding two month period, no later than the last business day of the month following the end of the applicable VAT period. Failure to comply with this legal requirement imposes an immediate 10% penalty and furthermore, interest accrues on a daily basis.
As an example, should your designated VAT periods be 1 August until 30 September, than your VAT return will have to be submitted and paid by no later than Tuesday, 31 October 2012.
Kindly note an important change announced by SARS:
Prior to 1 October 2012, VAT vendors were entitled to file VAT 201 returns electronically on the last business day of the month, including effecting the payment of the VAT amount due.
The Tax Administration Act, 2011 became effective on 1 October 2012 and now require that the submission of VAT201 returns be effected by the 25th of the month following the VAT period. However, the payment of VAT due may still be effected by the last business day of the month the return was submitted. However, please note the practice generally prevailing prior to 1 October 2012 is still applicable, and hence the September 2012 VAT201 return can still be submitted by the end of this month.
This change has a significant impact on the date in which you receive your VAT calculations from your finance department or Accountant and subsequently also the date on which you authorize this return for submission and payment. It appears as if most of us will have to adapt our internal financial systems to ensure we do not miss this new deadline.
Thrive CFO’s Comprehensive Accounting package ensures that clients in most parts of the country complies with SARS legislation hassle free, by ensuring accurate and timeous monthly reporting. Allowing them sufficient time to plan month-end cashflow and still meeting their SARS deadlines.
