By Engelsman Magabane Incorporated | July 2026
Every tax file has a personality.
Some are neat. Some are chaotic. Some are one missing certificate away from drama. And some have a skeleton in the cupboard wearing a label that says: “We will deal with this later.”
Later is not a tax strategy.
SARS’ permanent Voluntary Disclosure Programme, or VDP, allows qualifying individuals, companies or trusts to voluntarily disclose and regularise their tax affairs. SARS states that where it discovers non-compliance through its own investigative processes, it will not make the same opportunity available to those taxpayers and will act within the law to deal with non-compliance.
That is the heart of VDP: come forward before SARS finds it.
What is VDP?
VDP is a legal mechanism under the Tax Administration Act that allows qualifying taxpayers to disclose tax defaults and regularise their affairs. It is not a discount shop. It is not a refund shortcut. It is not a way to hide the problem more politely.
SARS describes VDP as a permanent programme available to qualifying individuals, companies or trusts that voluntarily disclose and regularise their tax affairs.
Who may apply?
SARS states that taxpayers with tax defaults who want relief from penalties and to avoid possible criminal prosecution may voluntarily disclose outstanding tax affairs. Defaults can include inaccurate or incomplete information or failure to submit information requested by SARS in relation to taxes SARS administers, excluding customs and excise duties and levies.
This is why legal advice is important before applying. Not every tax problem is a VDP problem. Not every disclosure qualifies. Not every “oops” should be handled the same way.
What are the requirements?
SARS lists the core VDP requirements clearly. The disclosure must be voluntary, full and complete in all material respects, involve a qualifying default, not result in a refund due by SARS, and be made in the prescribed form and manner.
The phrase “full and complete” is important. VDP is not designed for half-confessions. SARS’ FAQ explains that where full and complete disclosure is required, the taxpayer must go back to the period when the default began or first occurred.
What relief can VDP provide?
VDP may provide relief from certain penalties and help avoid possible criminal prosecution, depending on the facts and the requirements. SARS states that successful VDP applications culminate in an agreement dealing with the material facts of the defaults, the amount payable, the relief granted, payment arrangements and the possibility of withdrawal if SARS later determines the disclosure was not valid and complete.
This means the agreement matters. It is not just an online form. It is a legal outcome that should be understood before submission.
What VDP does not do
VDP does not erase tax. It does not automatically stop all verification. SARS’ FAQ states that a VDP agreement does not prevent an audit or verification from continuing, and taxpayers should contact the VDP division for assistance where verification is triggered after VDP-related submissions.
SARS also states that VDP is self-contained and does not include a compromise request, although a taxpayer may include a request for instalment payment terms before concluding a VDP agreement.
Timing matters
The VDP advantage depends heavily on timing. If the taxpayer comes forward before SARS discovers the issue, the taxpayer may still qualify. If SARS discovers it first, the opportunity may be lost for that default.
That is why “let’s wait and see” is dangerous.
The better question is: if SARS asked for this tomorrow, would we be ready to explain it?
Conclusion
Tax problems rarely improve in dark cupboards.
VDP may be a valuable legal route for qualifying taxpayers who need to regularise tax defaults. But it must be voluntary, full and complete, and handled before SARS discovers the non-compliance through its own processes.
Engelsman tax rule: If your tax file has a skeleton, do not wait for SARS to open the cupboard.
This article is general information and not legal advice. For advice on your specific circumstances, consult a qualified attorney or tax professional.
Interactive post
VDP is best described as:
A) A tax discount shop
B) A legal route to disclose and regularise qualifying tax defaults
C) A way to hide tax problems
D) A refund shortcut
Correct answer: B.
- Tax skeletons in the cupboard?
- VDP may help qualifying taxpayers regularise defaults.
- It must be voluntary.
- It must be full and complete.
- It must be made in the prescribed form and manner.
- VDP is not a refund shortcut.
- If SARS finds it first, the opportunity may be lost.
- Voluntary beats discovered.