Completing and submitting a VAT201 return is where the rubber hits the road, where the application of the VAT Act, SARS VAT guides, SARS Rulings, Vat judgments, notices and regulations are practically applied. While a VAT201 return is a very simple return it is easy to get it wrong and getting it wrong could not only prevent the return from prescribing (leaving the return open for assessment by SARS for at least 30 years), but can also expose you to various enquiries from SARS and harsh penalties that could have been avoided if the return had been completed correctly.
Since South African VAT is a self-assessment type tax, the onus is on the taxpayer to ensure the law is correctly applied and the VAT201 return correctly gives effect to same. Given the complexity of the South African VAT law, this is a tremendous burden for a taxpayer to bear and unfortunately, ignorance is no excuse to the law.
Getting your VAT201 return reviewed by an expert familiar with SARS procedures and the comfortable with the law behind it assists in identifying hidden risks upfront providing an opportunity to manage or mitigate same before SARS raises a question and helps to alleviate the incredibly heavy burden of self-assessing compliance with the VAT laws and regulations.