SARS wants to change VAT forever

This is a solved problem SARS, you just lack the technology.

Almost all the top accounting systems out there can process PDF invoices and extract the data you are looking for. you simply need to buy the technology.


Here is a better idea. Stop taxing income and people being productive, and start taxing people sitting on more wealth than a single person could ever need, like all those cadres working in government.
 
I wholly support tax mechanisms being automated. It has long been my opinion that the administrative burden shouldn't be on the tax (and VAT) payer. However, the process needs to be improved because all tax handling must be correct and accurate.
 
So I think what they are talking about should work in theory. However, if a vendor does not use e-invoicing, I may just lose out of my vat refund. Also the auto assessment will then most likely be incorrect. To correct it however, as is currently the case, requires more documentation and manual input than the original problem they are trying to solve
 
I’m sure all the monthly fee accounting software providers are salivating. This really shouldn’t be a thing for any smme business.
 
quovadis said:
I’m sure all the monthly fee accounting software providers are salivating. This really shouldn’t be a thing for any smme business.
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agree, the moment a small business needs to employ a person to do their tax administration, the tax system to too complex.

VAT is one of those taxes, way to complex to administrator, too prone to fraud and distinctiveness productive work. you are literally taxing where people are adding value.

much better to switch a combination of revenue and asset/wealth based taxation. much simpler and easier to administer.
 
If they expect you to pay the vat over they can’t hold back the refund ..also this new system will cause huge cash flow problems for companies that have clients that pay late as sars will want their vat on the invoice wether the client has paid or not
 
jambai said:
If they expect you to pay the vat over they can’t hold back the refund ..also this new system will cause huge cash flow problems for companies that have clients that pay late as sars will want their vat on the invoice wether the client has paid or not
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That is exactly how VAT works at the moment for the vast majority of VAT registered businesses. You have to pay the VAT over to SARS regardless of whether or not you have received payment for the invoice.
 
deweyzeph said:
That is exactly how VAT works at the moment for the vast majority of VAT registered businesses. You have to pay the VAT over to SARS regardless of whether or not you have received payment for the invoice.
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Well but you hide the unpaid invoices on the vat control account until they are paid and keep rolling like that and sars does get it cash over time but it’s all about cashflow or you won’t be able to pay salaries or suppliers and have to close . This depends on the industries but I am talking for example a electrical company
 
jambai said:
Well but you hide the unpaid invoices on the vat control account until they are paid and keep rolling like that and sars does get it cash over time but it’s all about cashflow or you won’t be able to pay salaries or suppliers and have to close . This depends on the industries but I am talking for example a electrical company
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Sure you can do this if you want to land up in prison.
 
deweyzeph said:
You have to pay the VAT over to SARS regardless of whether or not you have received payment for the invoice.
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Accurate although its not uncommon for companies to issue a sales order or pro-forma invoice and then issue a tax invoice on receipt of payment/once items are delivered.
 
Swa said:
More red tape and costs for small to medium businesses. Guess who benefits.
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In fairness it'd mostly be affecting people with an old accounting package they bought in 1992. The major benefactor here are software companies. SARS has less VAT fraud to investigate as a result so we benefit indirectly.
 
quovadis said:
SARS has less VAT fraud to investigate as a result so we benefit indirectly.
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In theory... but the extra burden imposed is not worth the VAT fraud they are going after... people are still going to issue "faked"/doctored VAT invoices. People are still going to load contract prices to pay nchoncho. Their proposed changes add a bunch of administration burden.
 
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