VAT e-filing shock

Take note of the changes to VAT submissions from 1 October 2012 :

"VAT vendors may be caught off guard by a confirmation from SARS that all VAT vendors using e-filing will now have to submit their returns by the 25th of the month that follows after their tax period, and no longer have leeway until the last business day of the month. Payments may still be made via e-filing up to the last business day of the month.

This follows the non-binding opinion, issued on 16 October 2012 by SARS’ Cape Town legal department. The amendment to section 28 of the VAT Act came into operation through amendments included in the Tax Administration Act (TAACT) which came into effect on 1 October 2012.

The specific amendment read as follows:

‘‘(iii) a vendor registered with the Commissioner to submit returns [and payments] electronically [(other than by means of a debit order), must furnish the return] is deemed to have made payment within the period contemplated in subsection (1) [and make] if the vendor makes full payment of the amount of tax within the period ending on the last business day of the month during which that twenty-fifth day falls; ([ ] means deletion and underlining means inclusions)

The deletion of the words “must furnish a return” seems to have the effect that returns submitted via e-filing must now be submitted by the 25th of the month."

It is uncertain at this stage whether this amendment was intentional or just a general oversight by the legislature. Adding to the confusion is that the SARS short guide to the TAACT does not mention this significant amendment. Even SARS’ website, under benefits of e-filing, still states “e-filers are also given more time to make their submissions and payments”.

Taxpayers would, at the very least, have expected SARS to notify them, either by e-filing or a general notice on SARS’ website, , about the change. As a result of this amendment, vendors now have less time to obtain the relevant financial information to complete and submit their VAT returns. This could lead to an increase in
human error and the unfortunate possibility of penalties and interest being levied by SARS.
Taxpayers put processes in place immediately to ensure that they submit their VAT returns, which are due from 1 October 2012, by the due date now being 25 October.


Take note of the changes and don't get caught off guard.


Kind Regards








Steven







Steven Morris Chartered Accountant (SA)



3 Bickley Road



Sea Point



Cape Town



8005



Mobile :+27 83 943 1858



Facsimile : 0866 712 498



E-mail : steven@global.co.za



Website : www.stevenmorris.co.za