📜 Table of Contents
- What Are IT3D Submissions?
- Who Must Submit IT3D Returns?
- Consequences of Not Submitting IT3D Returns
- IT3D Submission Due Dates
- The IT3 Data Submission Process
- Common IT3D Submission Challenges & Solutions
- Easy SARS IT3D Submission with ActiveDonor
Understanding the SARS IT3D submission process is essential for organizations that issue Section 18A tax receipts in South Africa. In this article we will explore what IT3D submissions are, who needs to complete them, how the submission process works, and solutions to simplify compliance.
The new IT3D returns system plays a critical role in South Africa’s tax ecosystem, helping the South African Revenue Service (SARS) verify tax-deductible donations while ensuring that each donor can claim their rightful deductions.
For Public Benefit Organisations (PBOs) and other section 18a entities, mastering this IT3 data submission is not just about compliance – it’s about maintaining transparency, accountability, and valid section 18a receipt issuance to their donors.
📃 What Are IT3D Submissions? (aka. Section 18A Third Party Data Submission)
IT3D Returns are third party data submissions required by SARS from organizations that issue Section 18A receipts for tax-deductible donations. These submissions serve a dual purpose:
- They help SARS pre-populate taxpayer returns on eFiling
- They ensure that data to SARS from third parties is accurate and compliant.
This process is required by SARS and must be submitted via eFiling or the secured file gateway using your preferred channel.
🏨 Who Must Submit IT3D Returns?
The submission obligation extends to all entities authorized under Section 18A(1)(a) to (c) of the Income Tax Act to issue tax-deductible receipts. This primarily includes public benefit organisations (PBOs) with Section 18A approval, but also includes government institutions and/or UN agencies operating in South Africa.
Any organization that has issued even a single valid Section 18A certificate during the tax year is required to submit third party data to SARS.
😫 Consequences of not submitting IT3D returns:
Failure to submit these returns (or submit a nil when applicable) may jeopardize an organization’s tax exempt status and/or could lead to penalties.
Organizations risk losing their tax-exempt status and may also face penalties. Additionally, donors might be unable to claim their tax exemptions, undermining their financial benefits and avoid supporting the organisation.
Ensuring timely and accurate submissions is vital not only for maintaining compliance with SARS guidelines but also for preserving the trust and benefits afforded to donors.
IMPORTANT: Always refer to the most recent SARS guidance to stay current with any updates or changes in requirements.
📆 IT3D Submission Due Dates
Section 18A entities are required to submit their IT3(d) data to SARS within specific reporting periods. This two‐window process ensures timely processing of donor information and compliance with SARS requirements:
- Full Tax Year Submission: Entities must report all Section 18A receipts issued during the tax year—from 1 March of one year to the last day of February of the following year- by 31 May.
- Mid-Year Submission (if applicable): SARS also requires an additional submission covering receipts issued between 1 March and 31 August, which must be completed by 31 October.
- Even if no receipts were issued, a NIL declaration is mandatory!
IMPORTANT: Always verify the current deadlines on the SARS website, as SARS notices may update the above dates.
🚦 The IT3 Data Submission Process
SARS provides several resources to help organisations navigate the IT3D submission process. These include detailed guides on using eFiling and HTTPS channels, a comprehensive Business Requirement Specification document, and a dedicated FAQ section.
View available SARS resources here.
Prepare Your IT3 Data Submission
- Collect all donation records and Section 18A tax certificates issued during the tax year.
- Ensure your data is complete, accurate, and compliant with SARS requirements for third party data submission.
Create Your Submission File
- Format data using SARS’ Business Requirement Specification (BRS) Version 4.0.0D-10 (effective 7 October 2022).
- Follow the technical guidelines for pipe-delimited file formatting to ensure the secure data reporting of third party data to SARS.
Enroll for Third Party Data Submission
- Register on SARS eFiling for third party data submission access.
- Choose the right submission channel based on volume:
- eFiling: For small organisations (for less than 50 receipts).
- HTTPS: For medium files (less than 50k lines or 50MB) – party data using the HTTPS channel.
- Connect Direct: For large files (>10MB) using a bulk data filing service.
Test Your File
- Request access to the SARS Test Platform via Third Party Data Support.
- Validate your file format and data integrity before you submit the data to SARS on the production platform.
Submit Your Data to SARS
- Upload your file via your chosen channel (eFiling, HTTPS, or Connect Direct).
- Ensure submissions meet SARS deadlines during the submission period to avoid penalties.
- Organizations are required to submit the data to SARS, whether it is third party data to SARS or a nil return if no receipts were issued.
Declare Your IT3 Submission
- Complete the IT3-02 declaration form summarising your data submissions.
- Submit the form via SARS eFiling to finalise the declaration to SARS.
🚩 Common IT3D Submission Challenges & Solutions
🛑 Technical Hurdles
- Complex File Formatting: Manually creating pipe-delimited files that meet SARS specifications can be intricate and error-prone.
- Difficult eFiling Configuration: Setting up technical and administrative users, as well as activating the IT3 tax type in the eFiling portal, often poses significant hurdles.
- Challenging HTTPS Uploads: For many non-technical users, navigating the HTTPS channel for file uploads can be confusing and time-consuming.
- Limited IT Support: Many NPOs face difficulties in finding reliable technical assistance to generate the IT3 file, resolve formatting issues, and troubleshoot upload errors.
- Time Pressures: The overall complexity of the process often leads to delays, making it hard for organizations to complete submissions accurately and on schedule.
💡 Streamline your IT3(d) submissions by using a dedicated platform like ActiveDonor, which automates IT3D certificate generation and submission.
🛑 Strict Deadlines
- Challenge: Missing deadlines can lead to non-compliance and potential penalties.
- Mark key SARS submission dates (e.g., 31 May or 30 Oct) on your calendar to ensure nothing is missed.
- Begin the preparation process early, especially if you manage large donor databases or issue numerous Section 18A certificates throughout the year.
🛑 Data Accuracy Issues
- Challenge: Inaccurate data may result in rejected submissions and delays in donor tax deductions.
- Verify all donor details (e.g., tax reference numbers) and required information thoroughly before submission.
- Utilize automated tools to reduce manual entry errors and streamline data accuracy.
🛑 Compliance Risks
- Challenge: Inadequate compliance can jeopardize tax-exempt status and lead to financial penalties.
- Regularly audit your Section 18A tax receipt information to ensure it meets SARS requirements.
- Train staff on the importance of accurate IT3(d) submissions and the specific SARS guidelines.
⭐ Easy SARS IT3D Submission with ActiveDonor
While SARS provides essential resources for IT3D submissions, many organisations benefit from specialised tools designed to simplify the process.
ActiveDonor is a comprehensive solution tailored for South African PBOs. It streamlines the IT3 data submission workflow – from automated Section 18A tax certificate issuance to effortless IT3D submission, ensuring that all receipts are accurate and fully compliant with SARS regulations. By automating these processes, ActiveDonor significantly reduces admin burdens and minimizes errors during data submission to SARS.
ActiveDonor ensures that third party data is submitted to SARS accurately and on time!
ActiveDonor features centralized donor data management that allows PBOs to track donations and maintain donor information throughout the year. This makes it easier to compile the required information when IT3D submission deadlines approach.
With a single click, users can generate IT3 data files that meet all SARS requirements, eliminating the technical complexities often faced by organizations with limited resources.
👉 Join the Leaders:
Join the +150 PBOs who trust ActiveDonor for their IT3D submissions.
Book your free demo now and simplify your third party IT3D data submission process!
