Understanding SARS IT14SD

Compliance for your organisation made easier

SARS uses IT14SD to reconcile taxpayer data across a wide range of direct and indirect taxes. This has far-reaching implications for organisations and how they can meet any challenges to their tax data.

Above the annual corporate income tax return submission and assessment process (Verification of Income Tax return VAT201 declaration), an IT14 Supplementary Declaration (IT14SD) return may need to be submitted.

SARS may issue the IT14SD form to organisations after their tax returns have been filed. Using the new form, companies must reconcile and consolidate all their income tax, VAT, employees’ taxes (PAYE/UIF/SDL) and customs declarations.

What does the IT14SD mean for your company?

When an annual corporate income tax return is submitted, SARS assesses it and asks the taxpayer to review the return submitted against the assessment issued. In the event that there are any discrepancies, the taxpayer is required to amend its return accordingly. If there are no discrepancies, the taxpayer will then be required to complete and submit an IT14SD return. 

Essentially the purpose of this return is to reconcile all tax returns and all unreconciled differences must be explained. SARS will act based on the information populated on the IT14SD submitted. Should there be any unexplained (or insufficiently explained) unreconciled differences, the initial corporate income tax return submitted will likely be audited.

The challenge

The return requires an extensive number of items to be reconciled in the areas of VAT, payroll taxes, income tax and customs. As most of these reconciliations are not performed regularly by companies, the completion of the IT14SD can prove to be difficult and often generates significant un-reconciled differences.

Companies cannot afford to spend weeks manually performing these data intensive reconciliations every year. The reconciliation process is not simply a matter for your Tax department as it requires a deep understanding of the data. It will require a joint effort by the Finance, Tax and IT functions on an ongoing basis to ensure everything is captured accurately and timeously.

The solution

It is of utmost importance that taxpayers align their internal processes and systems to ensure that accurate information can be extracted in order to facilitate this added process initiated by SARS to avoid penalties.

A solution like VATSolve automates and consolidates your organisations VAT returns timeously and accurately, resulting in cash flow and improved business efficiencies. VATSolve enables you to easily perform the IT14SD monthly, quarterly, half yearly or annually which allows you to identify system errors or abnormalities earlier on a continuous basis.

This also offers real-time and historic access to all VAT data. It will also enable your organisation to reconcile SARS returns to transactions and VAT201 and IT14SD financial reporting, providing detailed, categorized analysis for easier reconciliation.

VATSolve is a complete VAT management solution for SAP that offers the benefit of submitting a single VAT return for multiple entities. It provides finance departments with increased productivity, it drives efficiencies, optimises cash positions and reduces risk. VATSolve, a South African-developed solution designed to address specific challenges associated with VAT regulation, complexity and compliance offers a VAT solution for SAP users that automates and consolidates VAT returns timeously and accurately with increased cash flow and improved business efficiencies. VATSolve is so confident that their solution delivers exceptional service and achieves what it sets out to do, that they offer a try-before-you-buy for qualifying clients. If you would like to know more, get in touch with us at info@vatsolve.co.za

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