Numerous speakers at the 2025 Tax Indaba held in mid-August, from SARS and National Treasury, re-enforced the scale of the revenue collections mountain they are climbing.
- The tax gap is estimated at R800bn p.a. (ie: the gap between the amount of tax levied and actually amount paid in SA)
- SARS aims to pull in at least R20bn more this year, following the May 2025 budget, and R70bn in the next three years (Project Amabillions)
- SARS has been allocated an additional R7.5bn over the medium term to support its revenue collection objectives. While much of this funding will go into collection efforts, the money will also be spent on strengthening the tax service’s technology and systems, specifically advanced data analytics and AI to identify non-compliance. Sars has reportedly onboarded 1700 new resources.
- SARS is giving high focus to debt collection and non-compliance.
As the revenue service ramps up efforts to boost collections, large South African corporates are reassessing their tax compliance strategies. VAT remains a high-risk, high-priority area for enforcement, especially for companies with complex structures, multiple VAT entities or high-volumes of transactions. And as SARS moves boldly forward to digitise tax processing, companies as exploring their own tax automation and digitisation strategies, to stay ahead.
An automation solution for you to remain ahead
VAT automation software is key to reducing compliance risks, improving accuracy, and streamlining VAT processing.
VATSolve, the leading specialist VAT automation software provider in South Africa, offers a comprehensive solution designed to integrate seamlessly with your financial systems. The platform:
- Auto populates VAT returns
- Enhances visibility of transactions, enabling comprehensive and efficient testing for accuracy and compliance
- Automatically consolidates multiple VAT entities, enabling compliance testing at group or entity level
- Streamlines Turnover and COS reconciliations
- Significantly enhances Cash Flow
- Ensures a rigorous compliance regimen using checklists and digital signoffs by preparers, reviewers and approvers
- Automates repetitive tasks using Robotics Process Automation (RPA)
- Enables direct submission into e-filing
- Streamlines VAT reporting for management, audits and for SARS verification requests
- Enhances tax team productivity
In a climate of increased scrutiny and digital transformation, VAT automation is a strategic investment. For large corporates, VATSolve is the ideal partner for enhancing VAT compliance and mitigating risk, while improving operational efficiency and boosting cash flow, ensuring long-term resilience in the face of evolving tax demands.