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How to Prepare

Your SA Prep Guide

Obstacles to look out for.

When considering how to prepare for VAT Modernisation, it is important to note that real-time reporting may bring about challenges for certain SA businesses, especially when it comes to system readiness. While siloed tax functions and adhoc data preparation processes may have been sufficient under the current framework, such systems will come under significant strain when real-time reporting comes into effect - unless needed changes are made beforehand.

According to Deloitte, common system obstacles that should be addressed include:​

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How to prepare for VAT Modernisation in the meantime?

Not sure where to start? Here are some of the measures that your business can take to ensure readiness for SARS’s upcoming, future changes.

In preparing for upcoming VAT reforms, it is important for businesses to revisit their current VAT compliance and administration processes. This includes looking at what their data looks like, how it is currently stored, as well as the processes involved in accessing, processing and formatting this data. This will help to evaluate whether current processes will be able to accommodate or scale with new regulation. Alternatively, such investigations will help to highlight if certain adjustments or changes need to be made.

With the release of its discussion paper on VAT modernisation, South African Revenue Services (SARS) have provided valuable insights into the planned, future trajectory of the country’s VAT system. However, businesses’ tax functions should still continue to proactively monitor and analyse further developments and updates in this space, allowing businesses to strategically align their operations to comply with evolving requirements.

With e-invoicing being the likely way forward when it comes to future VAT compliance, businesses should become familiar with what e-invoicing is and what it  is not. They should then assess whether it may be beneficial to incorporate a dedicated e-invoicing software into their existing business processes.

It should also be noted that the benefits of e-invoicing are not only limited to satisfying VAT modernisation requirements but can significantly enhance and strengthen many key business processes. Learn more about the benefits of e-invoicing here.

Establish consensus early by discussing VAT modernisation trends and changes with business leadership. By collecting input from a wide range of stakeholders early, businesses should have sufficient time to develop an optimal compliance strategy.
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Investigate existing data

Stay informed

Leverage e-invoicing

Participate in discussions