Coming forward before SARS arrives
The SARS Voluntary Disclosure Programme lets a taxpayer own up to a tax default before SARS finds it, and settle without an understatement penalty or a criminal charge. SARS pushed the programme again on 2 September 2026, listing relief from penalties, protection from criminal prosecution, possible interest relief and compliant tax affairs as what an applicant stands to gain.
The programme is permanent. It sits in the Tax Administration Act 28 of 2011 and is open to any individual, company or trust with a tax default, across every tax type SARS administers except duties and levies under the Customs and Excise Act.
The catch is in the word voluntary. Once SARS has found the problem itself, the door is shut.
What the relief actually covers
This is where the marketing and the fine print diverge, so it is worth being precise. SARS says on the same website that interest remittance is not provided for under the VDP relief provisions and is reflected on the VDP agreement, and that section 229 of the Act specifically excludes relief for a penalty for the late submission of a return. Its 2 September notice nonetheless lists possible interest relief. Treat interest as payable unless a VDP evaluator tells you otherwise in writing before the agreement is signed.
| Charge | Position under the VDP |
|---|---|
| Understatement penalty | Relief granted |
| Criminal prosecution for the disclosed default | Protection granted |
| Administrative non-compliance penalties eligible for relief | Waived on conclusion of the agreement |
| Penalty for late submission of a return | No relief, excluded by section 229 |
| Interest | Not remitted under the VDP provisions |
| The tax owed | Payable in full |
You also give something up. A VDP assessment cannot be objected to or appealed. The interest and penalties in it form part of the agreement and are final and binding. You cannot ask for a compromise on the VDP debt afterwards, although you may ask for instalment terms in the application before the agreement is concluded.
The six requirements
SARS grants relief only if the application meets all of the following:
- The disclosure is voluntary.
- It is full and complete in all material respects.
- It involves a default that has not occurred within five years of the disclosure of a similar default.
- It involves a behaviour listed in the understatement penalty table in section 223 of the Tax Administration Act.
- It does not result in a refund due by SARS.
- It is made in the prescribed form and manner.
The five-year rule catches repeat applicants. The refund rule stops the programme being used as a route to a payout. The behaviour rule means the default has to be the sort of thing that would otherwise attract an understatement penalty.
Voluntary means untouched
The courts have read voluntary strictly. In the Purveyors South Africa Mine Services matter, both the High Court and the Supreme Court of Appeal accepted SARS’s argument that an application was not voluntary where there was an element of compulsion behind it. Asking SARS for informal advice about the problem first, then applying, can be enough to sink the application.
The practical rule: do not phone SARS to sound out the issue. Get advice privately, then file.
What it will not fix
Outstanding tax returns that SARS already knows about do not meet the requirements. Those have to be regularised through normal channels, with the late-submission penalties that come with them. Outstanding returns SARS is not aware of may be accepted by the Voluntary Disclosure Unit.
If you have made an error on a return that produced a refund you were not entitled to, the application has to go in before you correct the return, not after.
An incomplete application is discarded without any notice to you. SARS names three common reasons: no description of the default, a missing source code, and an application that turns out to relate to returns SARS already had on file.
On how far back to go, SARS is blunt. You must go back to the tax period when the default began, and prescription will generally not apply, because a default usually involves one of the behaviours listed in section 99(2) of the Act.
How to apply
The form is the VDP01 and it exists only on eFiling, so you have to be registered. If you have no computer access, a SARS branch will capture it for you. A representative may apply on your behalf, provided both parties are registered on eFiling and the representative is linked to the relevant tax types.
Detail wins. SARS says the more complete the description of the default, the reasons for it and the supporting schedules, the better the chance of approval. Once submitted, do not ask for re-confirmation. If eFiling accepted it, it is on the VDP register, and an evaluator will make contact.
If you are working through filing season at the same time, our guide to SARS tax season 2026 covers the deadlines, and SARS refund not paid explains what holds a refund up. Undisclosed offshore income is the classic VDP case, and the courts have recently taken a hard line on it, as we covered in the Supreme Court warning on offshore money. If the default involves an unreported asset sale, check the rules in our explainer on capital gains tax before you quantify it.
Where to check
The programme sits under Legal Counsel on sars.gov.za, where SARS publishes the operational guide, the policy guide and a long FAQ. The Voluntary Disclosure Unit takes calls on 0800 864 613, and the general SARS Contact Centre is 0800 00 7277. Read the requirements on that page before you file anything, because an application that fails one of the six tests is thrown out without a word.
