Tax and SARS knowledge base
How does a business submit a VDP application on eFiling?
How does a business submit a VDP application on eFiling?
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Direct answer
For an eFiling user, SARS says that VDP01 must be completed online and submitted through SARS eFiling. The SARS guide directs the user to choose Returns, Voluntary Disclosure and New Application. The applicant then selects the application type and relevant tax type or types, completes VDP01, attaches supporting material where needed and files it.
Do not start with the screen. A VDP application needs a valid, full and complete disclosure, so preparation of the facts, periods and calculations should happen before a company files.
What this means in practice
The VDP01 is not an ordinary income-tax, VAT or payroll return. It is an application process that SARS uses to assess whether voluntary-disclosure relief is available. SARS says the form captures information about the applicant, the default and the reasons for it. More detailed information improves the chance of a successful application, but detail must be accurate and reconciled.
Use the company’s authorised eFiling access. Check that the correct entity is selected and that the person submitting has authority to act. SARS’s form asks whether the application is made by a representative and whether the representative has power of attorney. Keep the authority, company details and contact details current before filing.
The application may involve Income Tax, VAT or diesel, Employees Tax, or Other Taxes. Select only the relevant products and ensure that each affected period is accounted for. A VDP application number is automatically generated by the system. Keep it because SARS says it is needed when the related return is filed after a validated VDP application.
Step-by-step
- Prepare the company file first.
Build a schedule of each default by tax product and period. Reconcile the amounts to the ledger, returns, source documents and prior assessments. Prepare a factual explanation of what happened and why. Include previously understated income, previously overstated expenses or other relevant defaults in the schedule. Do not use VDP to file a return that would create a SARS refund.
- Log in to the right eFiling profile.
Confirm the company is available on the authorised user’s profile and that the public officer, representative or tax practitioner information is correct. Protect the application from unauthorised access, because VDP information is sensitive. Save a record of who filed it and when.
- Open a new VDP application.
In the SARS workflow, select Returns, then Voluntary Disclosure, then New Application. Choose either Registered Taxpayer or Anonymous Application as appropriate to the facts and advice received. Select at least one tax type, then continue to the VDP work page and open the VDP form.
- Complete the applicant and disclosure information.
For a company, SARS requires details such as registered name and registration number if they are not pre-populated. Identify the applicant entity type, tax types and affected periods. For each relevant product, use the return or assessment records to enter the correct reference, period, amounts and description of the default. Explain the default in clear factual language rather than conclusory statements.
- Attach substantiation.
SARS says supporting documents are preferred and describes them as important for substantiation and consideration. They can include a detailed explanation, evidence that the VDP requirements are met, a schedule of default amounts and tax calculations. Check file-format and size requirements, remove passwords where necessary and verify that the uploaded-document list contains every intended file.
- Save, review and file.
The Save function keeps the application as a saved form. The File function submits the completed VDP01. Review the declaration and all fields before filing. After submission, verify that the work page shows the form as filed and retain a PDF or print record, the submission date and the application number.
Documents and records to keep
Keep the completed VDP01, a complete export or print of the form, the application number, proof of submission, uploaded-document list, tax calculations, general-ledger extracts, source documents and all SARS notices. Keep a contemporaneous approval note identifying the director or authorised person who approved filing.
If SARS requests further information, send only a reconciled response through the indicated channel and retain proof. If an agreement is offered, compare it to the application and get advice before signing.
Important limits and exceptions
Submission does not itself grant VDP relief. SARS evaluates the application and supporting documents, may request further information or a meeting, and may issue an invalid outcome with reasons. A positive outcome leads to a VDP agreement for consideration and signature.
Applicants without internet and computer access can visit a SARS branch, where SARS staff can capture and submit VDP01. That practical alternative does not change the validity requirements. Screens and menu labels may change, so use the current SARS guide if eFiling looks different.
When to get tailored advice
Get advice before filing where the company has received an audit notice, has several tax products or years involved, has incomplete records, or expects a material penalty or payment consequence. A VDP filing should be reviewed carefully where it affects PAYE, VAT, directors, cross-border payments or a possible criminal offence.
TaxProof can help prepare a reconciled support schedule and filing checklist. We cannot confirm eligibility or promise that SARS will grant VDP relief.