SARS provides useful tips for SMME businesses

Responsibility:

Business owners are responsible for filing and making payment to SARS accurately and on time. This is regardless of whether you have a tax practitioner or someone else handling your tax matters.

Payments:

Tax payments can be made using eFiling or direct bank transfer. Payments must be made on time to avoid interest and penalties. Since December 2020, SARS no longer accepts cheque payments.

Record keeping:

Good record-keeping helps you explain what is declared on your tax return in case SARS has questions regarding information you declare. Keeping supporting documents such as sales slips, invoices, receipts, bank deposit slips and other documentation will help you manage your tax matters better and ensure that you remain tax compliant. This is particularly relevant to a VAT vendor who is required by law to keep records, which includes financial statements, purchase invoice, sales records, credit and debit notes, for five years.

Registration:

You are required to register your business with SARS, whether you are a self-employed individual or business. If you have registered your company with the Company and Intellectual Property Commission (CIPC), formerly called CIPRO, on www.cipc.org.za, SARS will automatically generate a Company Income Tax (CIT) reference number for you.

The company representative must then register on SARS eFiling to update information, and transact electronically and conveniently with SARS. It is important to note that it is still the taxpayer’s responsibility to ensure they are registered for the correct taxes e.g. VAT, PAYE, income tax, etc.

A self-employed person/sole trader or persons in partnerships need to register for Personal Income Tax (PIT) and other taxes directly with SARS via SARS eFiling.

What to look forward to in the next SARS column:

In the next column, SARS will look at the various taxes applicable to small businesses and when the different payments need to be made. For more information on your tax responsibilities and how to be tax compliant, visit www.sars.gov.za and click on the small business link.

Regional news

• SARS reopened its branch offices on February 17 to serve the public.
As part of SARS’ commitment to all members of the public, please take note of the following:
A. Bookings can only be made via the SARS website, following the link below: https://www.sars.gov.za/Contact/Pages/Make-an-Appointment.aspx

B. All virtual bookings via the SARS site will continue to be honoured via a virtual engagement (MS Teams or telephonic engagement)

C. The SARS Contact Centre (0800 00 7277) will continue to service any queries from the community.

D. All South African ports of entry manned by SARS customs officials will continue to operate during this lockdown period.

Please note that strict social distancing measures will apply, and all members of the public are required to wear masks at all times when entering any SARS building or engaging with any SARS official. No access will be allowed without the wearing of a mask. These measures are being undertaken with the wellbeing of employees and all South African citizens in mind and SARS appeal to all taxpayers to take this very seriously.

Tax number:

If you have forgotten your tax number there is no need to visit a branch. Simply visit www.sars.gov.za, click on “What’s my tax number” and complete the required fields.

Register for eFiling early:

The easiest way to submit your tax return is via eFiling or the SARS MobiApp, which allow you to interact with us without having to queue at a SARS branch. SARS urges taxpayers to register for one of our digital channels long before filing season begins this year in June/July.

Outstanding returns and outstanding debt payments:

SARS regularly calls taxpayers with outstanding returns and debt to remind them to submit the returns and make payment of outstanding debt. Taxpayers are informed about available payment options, including deferred payment arrangements if required. However, many people reject these calls when they see that it is a SARS person calling.

SARS encourages you to take this call and rather engage the SARS employee on various affordable options for you to settle your debt. Failing to do so could have serious consequences, including SARS appointing your bank as an agent to pay over the monies owed and/or issuing a civil judgement against your name or your company’s name.
This could result in unintended difficulties for you as the debtor.