[Question] SARS Automatically transferring clients to monthly from bi-monthly

[Francois_za]

Good afternoon everyone,

SARS system or by themselves transferred a client from bi-monthly to monthly VAT returns, we noticed this when SARS issued outstanding VAT returns for previous returns (Every single month instead of bi-monthly). I know depending on turnover this can happen, but are they not suppose to inform you that has been the case and is it legal for our client to submit this month (which is not normally a VAT submission month as nil) and submit the normal VAT return next month as they did not prepare to pay VAT by Friday? Thank you for any assistance or experience you may have had in a similar situation

Kind regards

[Andromeda]

This has been their practise for a long time now.
Their reason is that it is an automated process and it is a correct interpretation of the Act.

When this happened to me, I submitted nil returns for the other periods and uploaded an explanation letter when they did the review / audit.

[Dave A]

Sounds like something to keep an eye out for if there is no warning from SARS.

What triggers the conversion from bi-monthly to monthly VAT returns?

[Andromeda]

Category C
Under this category, a vendor is required to submit one return for each calendar month.
A vendor will fall within this category if :
the total value of taxable supplies made by the vendor has exceeded or is likely to exceed R30 million in any consecutive period of 12 months,

[Francois_za]

By same approach I mean it is the tax payers responsibility to know when they should move to c but there is no voluntary option to register under sars just does this on their own

[Dave A]

This has been their practise for a long time now.
Their reason is that it is an automated process and it is a correct interpretation of the Act.

Been chewing over this a bit now, and frankly I think this excuse is a cop-out. In this day and age, and especially because it is an automated process - how hard would it be to introduce an SMS and email notification into the automated process?

I have no problem with the notion that the taxpayer bears responsibility for their own affairs. But when you can do something simple that aids compliance, it should be done. Perhaps even it must be done.

Failing to notify the taxpayer of a change in their status..? I suggest SARS is open to a charge of being negligent here.