VAT201 Late Submission Penalty 2026

VAT201 Late Submission: Penalties for VAT Vendors

Guide to VAT201 late submission penalties for VAT vendors. Understand penalty calculations and steps to resolve outstanding VAT returns with SARS.

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VAT201 Late Submission Penalties for Vendors

All registered VAT vendors must submit a VAT201 return for each tax period. Late submission attracts a penalty of 10% of the VAT liability for each month the return is overdue, capped at 200% (20 months).

This penalty is separate from ANC penalties and late payment penalties. A single late VAT201 submission can therefore trigger multiple penalties.

VAT201 Deadlines

The VAT201 deadline depends on your VAT period:

Monthly filers — due by the 25th of the month following the tax period (or the last business day before the 25th if it falls on a weekend/public holiday)
Bi-monthly filers — due by the 25th of the month following the end of the two-month tax period

Risk of VAT Deregistration

Persistent non-compliance with VAT obligations can lead to SARS deregistering your business as a VAT vendor. This has significant implications:

You can no longer charge or claim VAT
Outstanding output VAT may become immediately payable
Your business reputation with clients and suppliers may be affected
Re-registration may be subject to additional scrutiny

Use our VAT Late Submission Calculator to calculate your penalty exposure.

Steps to Resolve Late VAT201 Submissions

Submit all outstanding VAT201 returns — file via SARS eFiling as soon as possible.
Pay any VAT owing — this stops interest from accruing.
Request penalty remission — apply under Section 217 if you have reasonable grounds.
Review your VAT processes — ensure your accounting system generates VAT returns on time each period.