What is a SARS Payment Advice Notice and when should I create one?

Direct answer

A SARS Payment Advice Notice, or PAN, is a remittance advice for specified SARS payment types. SARS says it displays the 19-digit SARS payment reference number used to allocate a payment to the correct taxpayer account. Create a PAN when you intend to pay at a bank or by EFT and the SARS process calls for it. If you pay through eFiling, SARS says you do not need a PAN because the payment already has the correct reference.

The PAN is a payment instruction record, not proof that you have paid. You still need to complete the bank or EFT payment and retain its confirmation.

What this means in practice

A PAN helps prevent a common administrative problem: paying SARS with information that cannot be clearly matched to the intended account. It identifies the payment item or items and provides the payment reference. Before generating it, make sure you understand the liability. A PAN cannot correct a wrong assessment, a return that is still outstanding or a dispute about what you owe.

For individuals, SARS says PANs can be obtained from the General Unpaid function on eFiling. Tax practitioners and employers or organisations can use General Unpaid or the Payment Advice Notice function under Payments. The exact menu may change, so use the option that is available in the relevant profile and make sure the correct taxpayer has been selected.

Where the payment is an EFT, note the details of the paying bank account as SARS instructs. Where it is a cash payment at a bank, SARS says the banking details do not need to be completed on the PAN. The payment route and your own bank's requirements can differ, so do not guess at fields that the live eFiling form does not show.

Step-by-step

1. Identify the amount that should be paid.

Use a current SARS assessment, statement or outstanding item. Check the taxpayer, tax type, period and total before you generate a payment advice.

1. Use the correct eFiling profile.

If you manage more than one taxpayer, confirm the legal name and tax reference number. A PAN generated for the wrong profile may look valid but lead to the wrong payment record.

1. Open the applicable payment function.

Use General Unpaid where appropriate. Organisations and practitioners may also have a Payment Advice Notice option in the Payments area. Select the actual item or items that you intend to pay.

1. Review the PAN before printing or saving it.

Check the listed tax items, amount and 19-digit payment reference. If something is wrong, cancel before you confirm where the screen allows it and correct the underlying choice.

1. Make the payment through the chosen channel.

For an EFT, follow the PAN and bank instructions. For an over-the-counter bank payment, use the current PAN, as SARS says banks will not accept other printed Income Tax account material in its place.

1. Keep the whole payment trail.

File the PAN with the bank confirmation and the underlying SARS liability. Later confirm the payment on your SARS account.

Documents and records to keep

• Current assessment, statement or unpaid item record.
• The PAN, including its PRN and selected line items.
• Bank payment proof or EFT confirmation.
• The paying-bank details recorded where relevant.
• Current SARS account evidence after payment.

Important limits and exceptions

SARS says individuals who want to pay different taxes at the same time must generate separate PANs. Organisations and tax practitioners may be able to select multiple items for a PAN, subject to the functionality available in their eFiling profile. Do not assume that a consolidated PAN is available simply because you can see multiple outstanding amounts.

A PAN is not required for an eFiling payment, and it is not a replacement for the bank authorisation needed for Credit Push. It also does not create a payment arrangement or prevent collection action. If you cannot pay the full amount, obtain professional advice on the appropriate SARS process rather than generating a PAN you cannot settle.

When to get tailored advice

Get help where the account shows conflicting balances, the payment is for several company tax products, a reference has been used incorrectly, or a debt is disputed. TaxProof can help reconcile the records and prepare a payment file, while SARS controls the account balance and allocation.

Related TaxProof guides

• What is a SARS payment reference number, PRN?
• How do I create a SARS Payment Advice Notice for EFT payment?

Sources

• SARS, Payment Advice Notice