To have outstanding SARS VAT debt can be a terrifying affair for most people.
The reason for this is mainly because the represented vendor / taxpayer can be held personal liable for the outstanding SARS VAT debt.
If you find yourself in a position that you got behind with VAT payments it is important to approach SARS with one of the following actions:
1. Application for a repayment plan over a period of time. SARS will generally easily accept a repayment plan of up to 6 months.
2. Application for a compromise of outstanding SARS VAT debt. With this application you will offer SARS an amount as full and final settlement of the outstanding amount. This application will only succeed if you do not have a big net assets value.
For both applications you would need the following documentation:
- Last 6 months bank statements.
- Financial statements for the latest complete financial year.
- Management statements up to latest month completed.
- Cash flow forecast for the following 12 months.
- Motivation letter for the repayment OR compromise application
- The necessary application forms.
Feel free to contact us
for assistance with the application.
We are currently members of the Institute of Accounting & Commerce (The principle director JN Basson are registered with practice number AO652993) & South African Institute of Tax Practitioners.
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