IT14SD - Yet another reconciliation coming from SARS

[Dave A]

I've received this news from The South African Institute of Tax Practitioners.

28 March 2012

Notice: New VAT IT14SD Returns

The South African Revenue Service (SARS), recently introduced the new Supplementary Declaration (IT14SD) returns in an attempt to enhance tax compliance by Companies and Close Corporations through the verification and reconciliation of the various declarations made to SARS.

The IT14SD is intended to reconcile financial information across Pay As You Earn (PAYE), Income Tax, Value-Added Tax (VAT) and Customs tax types.The form requires the reconciliations to be accurate to within R100. It has to be completed and submitted within 21 days.

The return requires taxpayers to reconcile and substantiate the differences between the following:

- Turnover as disclosed per the IT14 to the value of supplies as disclosed per the VAT201 returns;
- Cost of Sales as disclosed per the IT14 to input tax claimed as disclosed per the VAT201 returns;
- Salaries submitted as per the EMP201 returns to salaries disclosed as per the IT14 return;
- Accounting profits and losses and tax profits and losses;
- Exported sales value per Custom declarations and export sales as disclosed per the IT14 and VAT201 returns; and
- Importation values per Custom declarations and imported costs as disclosed per the IT14 and VAT 201 returns.

Taxpayers who are eFilers and who have been identified for verification will receive an initial verification letter which will be displayed on their eFiling profile. The form will automatically be available for completion and submission. Taxpayers who are not registered for eFiling will receive the IT14SD by post along with the initial verification letter.

The IT14SD can be submitted through one of the following channels:

- Filing: If you are a registered eFiler you will be able to log into eFiling, complete and submit the declaration;
- SARS branches;
- Drop boxes at SARS branches; and
- By post.

However, SARS encourages taxpayers to complete and submit their IT14SD electronically via eFiling. This will ensure faster processing of returns, the ability to submit supporting documents, track returns and refunds, and request the revision and adjust returns electronically.

Taxpayers are advised to keep track of differences between their accounting and tax records and to reconcile these differences in order to assist with the completion of the IT14SD return.