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SARS: VAT modernisation
- 17 October 2023
- Tax
- South African Accounting Academy
This discussion document seeks to explain, at a high level, the modernisation of the South African Value-Added Tax (VAT) administrative framework.
This is in pursuit of its strategic objective of modernising its systems to provide digital and streamlined online services and making it easy for taxpayers to comply with their obligations.
The modernisation will impact businesses registered or required to be registered for VAT (vendors).
In line with international trends in making the VAT system agile and easy to administer (both for the tax authority and vendors), there is a growing acceptance for the adoption and implementation of real-time or close to real-time transmission of VAT data from vendors to the tax authority, and the reporting of VAT data using the modern VAT return.
Comments are due by Monday, 23 October 2023.
Click here to download the Discussion Paper:
Relevance to Auditors, Independent Reviewers & Accountants:
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The VAT Act is yet another piece of legislation that your clients must comply with, and which you must assess compliance with. Suppose they don’t comply with the relevant laws and regulations. In that case, you have certain reporting obligations in terms of NOCLAR (Non-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
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As an auditor, independent reviewer, accountant and tax practitioner, you may need to advise your clients on the latest VAT modernisation process and details.
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As a vendor, you must also comply with the VAT Act in your business.
Relevance to Your Clients:
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A vendor (individual, company, or close corporation) has a duty to comply with the VAT Act, otherwise they could be held liable.