1) If I have cash flow problems and I cannot settle the VAT due, what would be the implications if I do not settle the amount?

If the VAT return is filed with the Department without the accompanying payment, then the taxpayer will be subject to various penalties and interest.

Monthly interest of 0.52% of the tax due will start to accrue from the date that it becomes payable.  Further penalties are contemplated under the Act if the taxpayer is found guilty before a competent court.  These new measures are applicable as from 1st January 2014.

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