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Welcome to EVANS, an Eva Financial Solutions Small business Community forum.

Discussion

Is your business owing SARS money? How do you go about getting a compromise or a repayment plan?

You can read more here. 

Discussion

How to apply for the waiving of penalties for tax debt:

1. Larger businesses (with a gross income of more than R100 million) that are incapable of making payment due to the COVID-19 disaster, may apply to defer tax payments without incurring penalties by emailing SARS on COVID19IPAaboveR100m@sars.gov.za

 

2. Similarly, businesses with a gross income of less than R100 million can apply for an additional deferral of payments without incurring penalties by emailing SARS on COVID19IPAbelowR100m@sars.gov.za

 

3. For more information on the requirements and documents to include in the application, visit the how do I query my debt webpage. 

Discussion

VAT ON IMPORTED ESSENTIAL GOODS (should I charge VAT on essential goods?):

There is some confusion regarding whether or not local vendors should charge VAT on imported (exempted) essential goods as defined.

 

Please note that the South African Revenue Services has clarified that VAT treatment of the local supply of goods by an importer or any other vendor is unaffected by the import VAT exemption. The normal provisions of the Value-Added Tax Act, 1991, apply.

 

This means that locally, a vendor will still be charging VAT when selling the essential goods. 

Answer

There is a tax relief measure which runs from 1 April 2020 and ending on 31 July 2020 with the following conditions:

  • Deferral of payment of 35 per cent of the PAYE liability, without SARS
    imposing administrative penalties and interest for the late payment thereof.
  • The deferred PAYE liability must be paid to SARS in equal instalments over
    the six-month period commencing on 1 August 2020, i.e. the first payment
    must be made on 7 September 2020.
  • The entity applying this relief measure must be tax complaint and must have submitted all tax returns as required by the relevant tax... (More)