VAT 201 SUBMISSION DATES

[CLIVE-TRIANGLE]

Prior to the effective date of the Tax Administration (1 October 2012) it was possible for a vendor furnishing VAT201’s by way of efiling to do so by the last day of the month during which the return was due. The Tax Administration Act changed this principle and now requires that the return must be submitted by the twenty-fifth day of the month. It does not influence the principle that payment of the tax due can still be made within the period ending on the last business day of the month during which that twenty-fifth day falls. It is therefore important to notice that the returns due in October 2012 (in respect of VAT periods ending during September) will have to be submitted by 25 October 2012.

[Dave A]

Just blows me away that SARS does such a poor job of notifying their clients on this sort of thing. A 10% penalty for a late return is no laughing matter - especially when it's because a deadline has been moved forward and the change is buried in a mass of fine print somewhere.

[CLIVE-TRIANGLE]

You are so right. I received that notification from SAICA. I have read the relevant aspects of the bill and the wording is so cumbersome that to be honest, I don't come to the same conclusion as SAICA (or any other for that matter!) but I certainly defer to their expertise and advice.

I have searched SARS' site as well as efiling site and find nothing....

[CLIVE-TRIANGLE]

This from SAIT today

Alert: VAT201 submission requirement
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 VAT 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 practice has been confirmed with SARS today and the office of the Commissioner informed us that a clarification in this regard will be issued.

[Dave A]

Probably a case of the line that allowed for the extension of the deadline for eFilers went missing. That sort of stuff can be tricky to pick up in a mass change like this.

At least the September return isn't affected. I had visions of having to do another general email to all the members again this month - at least now it can hold until next month.

I've already added the warning to the TFSA Facebook page and Twitter feed though.

[J7J]

Hi,

I subscribe to MoneywebTax's newsletter and their latest newsletter contains the following link:

http://www.moneywebtax.co.za/moneywebtax/view/moneywebtax/en/page197?oid=72569&sn=Detail&pid=1180

Seems like e-filers can still file and pay on the last business day of the month...

[CLIVE-TRIANGLE]

Thank you for the post J7J!

[Dave A]

The Tax Administration Act appeared to change this principle via the following clause "Section 28 of the Value-Added Tax Act, 1991, is hereby amended by the substitution in subsection (1) for paragraph (iii) of the proviso of the following paragraph:

(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", says Nel.

At times I do wonder if legislators deliberately aim to use the clumsiest way imaginable to say things.

[tax$$$]

To add to Clive and J7J's posts, I include the communication from the South African Institute of Tax Practitioners received today (thank you, I actually totally forgot about this):

26 October 2012
VAT SUBMISSION DATE: eFiling

SARS is not requiring VAT vendors who use eFiling to submit VAT returns on the 25th of the month. The benefit of no interest, penalties, or prosecution will remain effective if the return and payment are submitted via eFiling (or EFT) on or before the last business day of the month.

A perception has been created that to enjoy the benefit of no interest, penalties or criminal prosecution the due date for filing a VAT return electronically (i.e. via eFiling) is now the 25th of the month, though payment could still be made until the last business day of the month.

This was the result of an amendment to proviso (iii) to section 28(1) of the Value-Added Tax Act came into effect on 1 October 2012 when the Tax Administration Act became operational.

To clarify this matter, a further amendment to the proviso will be included in the current draft Tax Administration Amendment Bill. This will ensure that the due date for both filing and payment remains the last business day of the month if the return is filed via eFiling and payment is made either via eFiling or EFT on or before that day and the payment reflects in the SARS account on or before that day.

As a result, SARS is not requiring eFiling users to submit VAT returns on the 25th of the month. The benefit of no interest, penalties or prosecution will remain effective if the return and payment are submitted via eFiling (or EFT) on or before the last business day of the month.

However, eFiling users should note that interest and penalties are chargeable with effect from the 25th of the month where a return is filed or payment is made after the last business day of the month.