SARS has issued an updated Voluntary Disclosure Programme guide, incorporating changes under the Tax Administration Laws Amendment Act 4 of 2026 and a Constitutional Court ruling confirming that Voluntary Disclosure Agreements are final and binding contracts.
The South African Revenue Service (SARS) has issued an updated guide to the Voluntary Disclosure Programme (VDP), replacing the previous version published in August 2023 and incorporating recent legislative amendments and court rulings.
The revised guide, dated 21 May 2026, reflects changes introduced by the Tax Administration Laws Amendment Act 4 of 2026, which established a separate voluntary disclosure framework under Chapter XB of the Customs and Excise Act. Under the new framework, customs-related underpayments are no longer eligible for relief through the standard Tax Administration Act VDP process and must instead be addressed through the dedicated customs disclosure regime.
The guide also incorporates the Constitutional Court’s decision in C: SARS v Medtronic International Trading S.A.R.L. (2025), confirming that a signed Voluntary Disclosure Agreement constitutes a final and binding contract. As a result, taxpayers who conclude such agreements cannot subsequently seek interest remission through alternative statutory mechanisms.
The VDP, administered under the Tax Administration Act, 2011, allows taxpayers to disclose tax defaults voluntarily in exchange for relief from certain penalties and criminal prosecution. To qualify, disclosures must be voluntary, full and complete, relate to a qualifying default, and be submitted through the prescribed VDP01 form on SARS eFiling. Applications that result in a refund are not eligible.
Taxpayers are generally excluded from the programme if they have been notified of a pending audit or criminal investigation related to the default. However, a senior SARS official may permit an application in limited circumstances where the default would not have been detected during the audit and where granting relief is considered beneficial to the tax system.
Eligible applicants who enter into a written Voluntary Disclosure Agreement may receive relief from understatement penalties and administrative non-compliance penalties, while SARS undertakes not to pursue criminal prosecution for the disclosed tax offence. Assessments issued to implement a VDP agreement cannot be challenged through objection or appeal procedures.
The updated guide also includes administrative revisions, such as refreshed examples, revised terminology and provisions allowing virtual consultations at SARS Service Centres. It further reiterates that information disclosed through the VDP process remains confidential, except where disclosure is authorised by law.
