NEW FINANCIAL YEAR IS HERE!
What's there to know?
As we enter the new financial year, starting from 01 March 2021, most companies need to update their status at Sars, as this may affect the CSD profile status and in the end affect their payment processes from government and other private institutions.
Many companies whose their financial year end is 28 February, their status changes as soon as they enter the new financial year in March. It is important to ensure that your accountant has been provided with source documents in order to prepare the financial statements and that your income tax returns are submitted at SARS and your compliance status profile is updated and compliant.
What happens if i don't update my status?
This is a screenshot of non compliant SARS profile
The South African Government introduced the Central Supplier Database (through the National Treasury) that all companies that offer services and supply to local municipalities or government departments should have peace of mind when it comes to getting their payments on invoices issued to such departments. The CSD was introduced to provide a streamlined payment that is secure and reliable, ensuring that payments go to the rightful owner. In this case when you are registered with CSD you would agree with me that bank details of your company are captured on CSD system and verified with your bank.
When the government is processing payments for its supplier(s), thus your company; they make sure that your company is compliant with SARS, in this case, the CSD system is linked with your SARS profile and the moment your SARS profile becomes non-compliant, this information is also displayed on CSD profile and in this case you can not be able to receive payments from government or any institution that process payments through the Central Supplier Database channel.
It is therefore important to note and make sure that you know the status of your SARS compliance profile which might change at anytime depending on outstanding returns not submitted to SARS or payment not made on any assessed tax.
As soon as we get into the new financial year, and your company's year end is February, you are supposed to submit all relevant tax types your are registered on such Business Income tax, VAT, PAYE, EMP501 and ensure that payments (if any) are paid over and your status is compliant.
If your status with SARS is not compliant, you will not get paid on invoices you have issued to any government department.
LN Business offers bookkeeping and Accounting services including tax services, we are ready to assist you in this regard. prepare such source documents such as bank statements for the whole financial year, customer and supplier invoices, and any business-related slips and we will be able to assist in preparing your financial statements.
HOW DOES A NON COMPLAINT STATUS LOOK LIKE?
This is a screenshot of non compliant CSD profile
When your profile is like this on Central Supplier Database profile and in this case you cannot get paid.
Why lose money or not get paid when we are here to help?
Call us now or contact us on the details below!