| 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
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| 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 avoid the imposition of understatement penalties and other administrative penalties
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| Which of the tax types are included under the VDP? |
The VDP is applicable to all taxes administered by SARS (excluding Customs and Excise)
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| Who may apply for VDP? |
Any individual or company who want to voluntary disclose their tax affairs to SARS, provided they qualify for the VDP
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| Are there any requirements for a valid VDP application? |
Yes. In order for an application to be valid, the following requirements should be complied with:
- The disclosure must be voluntary
- It must involve a default which has not previously been disclosed by the applicant or representative of the applicant
- It must be full and complete in all material aspects
- It must involve the potential imposition of an understatement penalty in respect of the default
- It must not result in a refund due by SARS
- It must be made in the prescribed form and manner
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| What happens if a VDP application is incomplete? |
An incomplete VDP application is discarded by the VDP unit without further notice to the applicant.
Examples of these are –
- where the applicant does not reflect a description of the default
- if the source code is absent
- if the application relates to outstanding tax returns of which SARS is already aware
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| 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 eFiling system
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| Do I need to be registered for eFiling to apply for VDP? |
Yes. It means that you first need to register on the eFiling system before you can apply for VDP.
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| What happens if my application is approved? |
An agreement is concluded between SARS and the applicant that reflects the outcome of the application process |
| Can I object and appeal against a VDP assessment? |
No. The VDP assessment gives effect to the VDP agreement, and typically includes the disclosed additional taxable income and, depending on how long ago the default occurred, interest and late payment penalties. |
| Can I request a remission of interest and/or penalties raised in a VDP assessment? |
No. The interest and penalties form part of the VDP agreement as well as the VDP assessment, both of which are final and binding. |
| What must I do if I have made an application for VDP? |
The following are important to note:
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It is not necessary to request re-confirmation of VDP applications. If the eFiling system recognised the application, then the application is on the VDP register and will be processed
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The applicant will be contacted when the application is allocated to a VDP evaluator for processing. Additional or outstanding supporting documentation can then be submitted
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A VDP application can at any time be cancelled by sending an email to vdp@sars.gov.za
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Corrected or amended tax returns that related to a VDP application can be submitted to SARS through normal channels at any time before the VDP application is processed. If the return is assessed by SARS before the VDP application is processed, understatement and non-compliance penalties that are eligible for VDP relief will be waived when the VDP application is processed and a VDP agreement concluded
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No late submission penalties or interest are eligible for VDP relief; these must be paid on assessment
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| Can a representative person apply for VDP on behalf of the taxpayer? |
Yes, a representative person can apply for VDP on behalf of the taxpayer.
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| What are the requirements for a representative person to apply on behalf of the taxpayer? |
Both the taxpayer and the representative taxpayer must be registered on eFiling and the representative taxpayer must be linked to the tax types and profiles.
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