HOW TO PAY FOR TURNOVER TAX

There are three payment dates:
  • 1st payment is in the middle of the tax year on the last business day of August i.e. 29 August 2014 on the TT02 – Payment Advice for Turnover Tax
  • 2nd payment is at the end of the tax year on the last business day of February i.e. 27 February 2015 on the TT02 – Payment Advice for Turnover Tax
  • Final payment is after the annual TT03 - Turnover Tax Return is submitted and processed
The first two interim payments must be made based on the estimated taxable turnover of the business for that tax year. After the end of the tax year, a turnover tax return (TT03) that reflects the actual taxable turnover of the business must be completed. Any shortfalls / overpayments then become payable / refundable.
 
The second interim payment must be equal to the amount of turnover tax payable on the estimate for the full year, less the first interim payment.
 
Interest is charged for the number of days for which any portion of the tax remains unpaid.
 
Where the estimate of the taxable turnover for the second interim payment is less than 80 percent of the actual taxable turnover for the year of assessment, an underestimate penalty equal to 20 percent of the difference between the following will be charged:
  • Tax payable on the estimated taxable turnover; and
  • Tax payable on the actual taxable turnover for the year of assessment.
SARS may estimate the interim payments due by a micro business where the business fails to make such payment or where SARS is not satisfied with the amount paid in respect of the interim payment.
 
When any day specified for any payment to be made falls on a Saturday, Sunday or public holiday, the payment must be made no later than the last business day before the Saturday, Sunday or public holiday.
 
Top tip: Remember to take into account the time needed for processing where payments are made via a bank or ATM.
 
Where payments are made electronically, allow for the bank's cut-off time and for a clearance period that could take between two and five days.
Last Updated: 19/11/2014 2:26 PM     print this page
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