Practical accounting insight: A SARS payment that leaves the business bank account is not necessarily a payment that has been correctly allocated. For South African businesses, the payment reference, tax type, amount and taxpayer account should form part of a basic finance control before every SARS payment is released.

SARS states that its Payment Advice Notice (PAN) displays a 19-digit payment reference number intended to help allocate payments to the correct taxpayer account. The PAN applies to several tax categories, including income tax, PAYE, penalties, VAT-related payments and provisional tax. Businesses paying by electronic funds transfer or over the counter should use the applicable PAN rather than relying on an old statement or manually copied reference. SARS explains the PAN process here.

Why the payment reference matters

Incorrect or incomplete references can create avoidable administration problems. A payment may appear in the bank account as completed while remaining difficult to match to the correct tax period or liability. This can complicate month-end reconciliations, create uncertainty over an outstanding balance and delay the resolution of a SARS statement that does not agree with the accounting records.

SARS says eFiling payments do not require a separate PAN because the correct reference is included in the payment process. For EFTs, employers and organisations can obtain a PAN through the “General Unpaid” function or through the “Payment Advice Notice” option under the Payments section on eFiling. The process also allows eligible users to select multiple items for inclusion on one notice. The official SARS guidance sets out these options.

Who should review the process?

This is particularly relevant to SMEs that make tax payments through a shared banking profile, use an external bookkeeper or have one person preparing payments and another approving them. It is also useful for businesses managing several tax types, branches or related entities, where a reference intended for one account can easily be used for another.

Employers should include PAYE and other payroll-related liabilities in the same control framework. SARS lists PAYE among the liabilities for which a PAN may be used, while its current filing-season information confirms that the 2026 employer interim filing period runs from 21 September 2026 to 31 October 2026. Businesses can check the current SARS tax-season information here.

What businesses should check

  • Confirm the legal entity and SARS profile before preparing the payment.
  • Match the liability to the correct tax type, period and amount.
  • Generate the PAN immediately before the payment where an EFT or bank payment is being made.
  • Use a second-person review for the reference, beneficiary and amount.
  • Save the PAN, proof of payment and SARS statement together in the accounting records.
  • Reconcile the payment against the SARS statement after processing, rather than only against the bank account.

A practical month-end routine

Finance teams can add a short SARS payment checklist to their month-end close. The preparer should document the liability and attach the PAN. The approver should independently compare the PAN with the tax calculation and bank instruction. After payment, the bookkeeper should record the transaction against the correct tax-control account and investigate any unmatched balance promptly.

This approach does not replace checking the relevant SARS return, assessment or statement. It is a straightforward internal control designed to make payment evidence easier to trace and errors easier to identify. Businesses wanting to improve their bookkeeping, payroll and tax administration processes can explore Your Financial Partner’s accounting and advisory services.