Staying compliant with SARS is a constant background task for SME owners already focused on growing the business, but the basics do not change often, and getting them right avoids unnecessary penalties.
What matters most when submitting tax returns
Returns need to be accurate and submitted according to the relevant Act, submitted and paid on time to avoid penalties and interest, and any SARS query needs to be acted on promptly rather than ignored, according to Gary Epstein, CEO of accounting software provider EasyBiz Technologies.
The major SARS deadlines SMEs need to track
VAT: Payments are due according to the VAT category assigned to the business, ending on the last day of the relevant calendar month, whether that means submitting monthly, every two months, every six months or annually.
Provisional tax: Typically due at the end of August for the first provisional payment and the end of February for the second, for businesses with a February year end.
Employee taxes: A monthly EMP201 return covering PAYE, the Skills Development Levy and UIF is generally due by the seventh of each month, alongside an annual EMP501 reconciliation covering the full March to February tax year.
Extensions exist, but confirm eligibility first
SMEs can apply for certain extensions, but these remain subject to the Income Tax Act and Tax Administration Act. Consulting a tax professional before assuming an extension applies to your situation avoids a costly misunderstanding.
Where SARS shows no flexibility
Late returns and late payments are treated strictly, and the resulting fines and interest are avoidable simply by submitting on time. If a business genuinely cannot afford a full-time accountant, outsourcing tax compliance to a registered tax practitioner is a more reliable option than handling it inconsistently in-house.
Getting the right software helps
Reliable accounting software that produces accurate VAT reports makes SARS compliance considerably easier, provided the underlying data entered is accurate. A good package should have thorough reporting capability, integrate with other tools the business uses, and come with local support from the vendor.
Frequently asked questions
What happens if an SME ignores a query from SARS?
Ignoring a SARS query is one of the most common and avoidable ways SMEs end up with penalties. Acting on queries promptly, rather than assuming they will go away, is essential.
Can a small business apply for a deadline extension with SARS?
Yes, but extensions remain subject to the Income Tax Act and Tax Administration Act, so it is worth confirming eligibility with a tax professional rather than assuming one applies.
Should a small business without a full-time accountant handle its own SARS compliance?
If there is no capacity for a full-time accountant, outsourcing to a registered tax practitioner is generally more reliable than handling submissions inconsistently in-house.
Compliance rewards consistency, not effort under pressure
Most SARS compliance problems come from missed deadlines and ignored queries, not from genuinely difficult tax questions, which makes consistency the highest-value habit an SME owner can build.
Further reading: A Guide to Understanding Tax Obligations for South African SMEs | South African Revenue Service for official current tax deadlines and requirements
Originally published in April 2019. Updated September 2026 to tighten this SARS compliance guidance from EasyBiz’s Gary Epstein. Confirm current submission dates directly with SARS, since specific deadlines can shift.
