SARS will allocate a VAT category to the vendor when registering as a vendor, e.g., monthly or bi-monthly. The vendor is required to submit its periodic VAT returns in accordance with the assigned category. The VAT return (and corresponding payment) will be due by the end of the month following the month for which the VAT is declared, e.g., January’s VAT return will be due end of February.
In terms of the VAT return, a vendor must calculate its total output tax liability for the period (based on the taxable supplies made) and deduct from that its input tax. Only the net VAT liability is payable to SARS. If payment is made late, SARS will levy an automatic 10% late payment penalty and interest on the amount. If the vendor’s input tax exceeds its output tax liability for the tax period, a net refund will be due to the vendor, which SARS will refund into the vendor’s bank account.
SARS may verify a VAT return for accuracy and request specific documentary evidence to support what was declared in the VAT return. Vendors are obligated to provide SARS with the supporting documentation to enable SARS to conduct the verification.