If you’re wondering whether you owe money to the South African Revenue Service (SARS), it’s important to stay on top of your tax obligations to avoid any surprises. The good news is that SARS provides easy-to-use platforms and resources to help you track your tax status.
In this article, we’ll show you how to check if you owe SARS money and guide you through the next steps you should take to resolve any issues.
Step 1: Accessing Your SARS Profile
The first thing you need to do is log into your personal South African Revenue Service profile. If you haven’t registered yet, don’t worry – you can easily set up an account on the SARS eFiling website.
How to Access Your Profile:
- Go to the SARS eFiling website: www.sarsefiling.co.za
- Enter your login credentials: You will need your username and password, or you can use your ID number and password if you’re a registered taxpayer.
- Secure Access: Follow any security verification steps, such as one-time PINs (OTPs), to ensure that your account is safe.
Step 2: Check for Outstanding Tax Debt
Once you’re logged in, you can view your tax status to determine if you owe SARS money. There are two main ways to check for any outstanding tax debts:
Review Your Taxpayer Profile:
- After logging into eFiling, navigate to the “My Compliance Profile” section.
- This will show whether you have any outstanding tax returns or balances due.
Check Your SARS Tax Statements:
- Go to the “Statements” section of your eFiling profile.
- View your tax statement for any amounts owed, whether it’s from income tax, VAT, or any other tax liabilities.
Common Indicators That You Owe SARS Money:
- Amount Due: If you see an amount listed as “Amount Due” or “Outstanding Tax” on your statement, it means you owe SARS money.
- Assessment Notices: If you receive an assessment notice via email or post that indicates a liability, it confirms you owe SARS.
Step 3: Verify Your Tax Compliance Status
Before jumping to conclusions, it’s worth verifying whether there are any discrepancies or errors. You may have paid the amount, but it has not been reflected on your SARS profile.
- Review Previous Payments: Check if you’ve made any recent payments that haven’t been recorded.
- Request a Statement of Account: If the debt seems unclear, request a statement from SARS to confirm all payments and liabilities.
Steps to Request a Statement of Account:
- On your eFiling dashboard, go to “My Compliance Profile.”
- Select “Request Statement of Account.”
- SARS will send you a comprehensive statement showing the balance.
Step 4: Understand What You Owe and Why
If you find out you owe money, it’s important to understand the reason. Some common reasons why individuals or businesses owe SARS include:
- Underreporting income or incorrectly filing tax returns
- Failure to submit tax returns on time
- Outstanding penalties for late payments
- Non-payment of provisional tax for businesses and self-employed individuals
Step 5: What to Do Next If You Owe SARS Money
Pay the Debt
The simplest solution is to pay what you owe, but if you don’t have the full amount, there are options available:
- Use eFiling or SARS Website to Pay: You can make payments directly through the SARS eFiling portal or at participating banks.
- Pay in Installments: If the amount is large, you can apply for a payment arrangement with SARS, which allows you to pay off the debt over time.
Apply for a Payment Arrangement:
- Log in to eFiling.
- Go to the “Payment Arrangement” section.
- Submit a request explaining your financial situation. South African Revenue Service will assess your request and provide terms.
Request a Compromise:
If you’re in serious financial hardship, you might be eligible to request a compromise on your tax debt. This is a legal process that reduces the amount you owe, but you’ll need to prove your financial situation.
Dispute the Debt
If you believe the debt is incorrect, you can dispute the assessment.
- File an Objection: You have the right to object to any tax assessment you disagree with. You must submit your objection within 30 days from the date of the assessment.
- Objection Process: Go to the “Objections” section on eFiling, where you can submit supporting documents to contest the debt.
What Happens if You Don’t Pay?
Failure to pay your tax debt can result in:
- Interest charges on the overdue amount.
- Penalties for non-payment.
- Legal action, including garnishment of wages or seizure of assets.
Step 6: Stay Compliant Going Forward
Once you’ve sorted out your tax obligations, the next step is to stay compliant with the South African Revenue Service to avoid future issues.
Tips for Staying on Track:
- File returns on time: Always meet deadlines for submitting tax returns to avoid penalties.
- Keep records: Maintain accurate records of all your income and expenses for at least five years.
- Pay taxes on time: Whether it’s income tax, VAT, or provisional tax, staying on top of payments is crucial.
Tax Deadlines to Remember:
| Tax Type | Deadline |
|---|---|
| Income Tax Returns | 30 November (for individuals) |
| VAT Returns | Quarterly or bi-annually |
| Provisional Tax | 31 August and 28 February |
Check also: How to Get a Tax Number from SARS – 3 Easy Steps
It’s essential to stay proactive and regularly check your SARS profile to ensure you’re not caught off guard with any outstanding debts. By following the steps outlined above, you can easily check if you owe SARS money and take the necessary steps to resolve any issues. Remember, staying compliant with South African Revenue Service not only helps avoid penalties but also keeps you financially healthy.
