Navigating the payment rules of the South African Revenue Service (SARS) is crucial for taxpayers and customs clients to ensure timely and accurate payment allocation. This article provides an overview of the payment options available and the key guidelines that must be followed to avoid penalties or interest charges.
When making a payment to SARS, it is imperative that taxpayers follow the stipulated payment rules. Payments that do not comply with these regulations may be rejected, leading to unnecessary complications and delays in processing.
Key Payment Guidelines
- Timeliness: SARS will only recognize payments once they have been received in their bank account. Payments made after the due date will be considered late, and it is the client’s responsibility to ensure that payment is made before the cut-off time relevant to their banking product.
- Electronic Filing Requirements: Customs and Excise clients required to declare goods electronically under the Customs and Excise Act must use the SARS eFiling service, regardless of their registration status for deferment of payment of duty.
- Payment Channels: Cash deposits at bank branches and ATMs for Customs and Excise clients are no longer available.
Available Payment Options
SARS offers several payment methods to cater to different needs. The following are the primary payment options:
- Payment Through eFiling This method is one of the most efficient ways to make a payment. Here’s how it works:
- Initiation: A payment request is initiated on the SARS eFiling platform.
- Authorization: Once the payment is released on eFiling, clients must log into their banking solution to authorize the payment.
- Immediate Confirmation: Upon authorization, the bank will send a confirmation to SARS, signaling that the payment has been made.
Supported Banks: A wide range of banks support eFiling payments, including ABSA, FNB, Nedbank, and Standard Bank. Clients should be aware of specific cut-off times and limits on payments (e.g., payments over R5 million may require multiple transactions).
Applicable Revenue Types for eFiling Payments:
- From Return: EMP201 (PAYE/SDL/UIF), VAT201, IT34 (Assessed Tax), IRP6 (Provisional Tax), and several others.
- Additional Payments: Including Air Passenger Tax, Estate Duty, and Donation Tax.
2. EFT Payments
Clients can also make payments via Electronic Funds Transfer (EFT). Important considerations include:
- Beneficiary Accounts: Payments should be made to unique beneficiary account IDs, listed as public beneficiaries on the banking platforms of various banks.
- Correct Reference Number: Using the correct 19-digit Payment Reference Number (PRN) is crucial for the acceptance of payments.
3. Payments at a SARS Customs Branch Office
For travelers, SARS allows payments for VAT and duties at major ports of entry using debit or credit cards, as well as cash under specific conditions. Notably:
- Cash Limitations: There are strict limitations on the amount of cash that can be paid at Customs branch offices, with maximum amounts set for different coin denominations and notes.
4. Foreign Payments
Foreign taxpayers can make payments via the SWIFT method, though this should be a last resort if other options are unavailable. Key points include:
- Currency: All foreign payments must be made in South African Rand (ZAR).
- No Charge Deductions: Any charges incurred during the payment process cannot be deducted from the amount owed to SARS.
The Payment Reference Number (PRN)
The PRN is a critical element of the payment process, ensuring that payments are correctly allocated.
- Pre-populated PRN: A unique PRN is provided for each payment request and is essential for matching payments with the corresponding tax items.
- Separate Payments: Different tax types and periods generally require separate payments to ensure correct allocation.
Unreferenced or partial payments may be allocated to the oldest debt first, following a First-In-First-Out (FIFO) basis.
Understanding and adhering to the payment rules established by SARS is vital for taxpayers and customs clients. By following the outlined procedures and utilizing the available payment options, clients can ensure that their payments are processed timely and accurately, thereby avoiding potential penalties and interest. For further details, clients can contact us at Tax A Sured (Pty) Ltd for assistance.
