- WHAT IS THE VOLUNTARY DISCLOSURE PROGRAMME (“VDP”)?
The VDP is a process regulated by the Tax Administration Act which encourages applicants to disclose their non-compliance, such as undeclared or understated income, and to give them the opportunity to become fully tax compliant.
- WHY IS THERE A VDP?
- The purpose of the VDP is to enhance voluntary compliance in the interest of good management of the tax system and the best use of SARS resources.
- WHAT DOES SARS WANT TO ACHIEVE WITH THE VDP?
- The VDP aims to encourage taxpayers to come forward on a voluntary basis to regularise their tax affairs with SARS and to pay the outstanding tax liability in order to ensure that the tax system is efficiently run.
- WHICH TAX TYPES ARE INCLUDED UNDER THE VDP?
- The VDP is applicable to all taxes administered by SARS, including income tax, employees’ tax (encompassing PAYE, SDL, UIF), VAT, but excluding Customs and Excise.
- WHAT ARE THE REQUIREMENTS FOR A VALID VDP APPLICATION?
- The requirements for a valid VDP application are that the disclosure must:
• Be voluntary;
• Involve a default which has not previously been disclosed by the applicant or representative of the applicant;
• Be full and complete in all material aspects;
• Involve the potential imposition of an understatement penalty in respect of the default;
• Not result in a refund due by SARS; and
• Be made in the prescribed form and manner.
- WHO MAY APPLY FOR VDP?
- Any individual, company or trust who wants to voluntarily disclose their tax non-compliance to SARS, provided they meet the requirements of a valid VDP application.
- WHERE DO I FIND AN APPLICATION FORM?
- The application form is called the Voluntary Disclosure Application Form (VDP01) and can only be accessed via the SARS e-Filing system.
- DO I NEED TO BE REGISTERED FOR E-FILING TO APPLY FOR VDP?
- Yes, you first need to register on the e-Filing system before you can apply for VDP.
- HOW LONG DOES IT TAKE TO PROCESS A VDP APPLICATION?
- SARS is inundated with VDP applications and the current average turnaround time of a VDP application, according to SARS, is 201 working days.