- What are the tedious aspects of compliance?
- What is automated VAT Compliance?
- How VATSolve can help improve your compliance?
VAT compliance is not the most exciting topic, and often a topic we want to avoid because it can be tedious, confusing, and administratively intensive. However, VAT compliance is an ongoing process, and not something we can attend to periodically. This is especially true now that VAT authorities are increasingly using technology to monitor VAT compliance and detect fraud. In an age of digital VAT returns and real-time VAT reporting, VAT registered entities need effective technology, expertise, and administrative processes to ensure ongoing tax compliance.
What are the tedious aspects of compliance?
Let’s kick off with some of the tedious aspects for businesses and the various requirements and administrative tasks required to remain VAT compliant.
Record Keeping: Businesses are required to maintain accurate records of all transactions, including invoices, receipts, and purchase documents. This can be time-consuming, especially for businesses with a high volume of transactions.
Calculating VAT: Calculating the correct amount of VAT to charge on sales and reclaim on purchases can be intricate, particularly when dealing with different VAT rates, exemptions, and special rules.
Filing VAT Returns: Businesses are typically required to submit regular VAT returns to SARS. This involves compiling all VAT-related data, calculating the VAT liability, and submitting the return on time.
VAT Payments: Paying the VAT owed to SARS can be a significant financial responsibility. Late payments or errors can result in penalties and interest charges. Read more about ‘How to save money on your VAT return’. https://www.vatsolve.co.za/blog/how-to-save-money-on-value-added-tax/
Compliance Audits: Tax authorities may conduct audits to ensure VAT compliance. Preparing for and participating in these audits can be time-consuming and stressful.
To simplify VAT compliance, it is best to automate your VAT process, with the assistance of a software management solution that is in line with SARS requirements, to avoid potential penalties and legal issues.
What is automated VAT compliance?
Automated VAT compliance means using a software management system to help keep track of your payments and transactions, with accurate and transparent VAT reporting, management checks and enquiries.
This might look like software that allows:
- Organisations to automate VAT analysis and calculation
- Submissions and requirements to be aligned to the VAT201
- All current and historical records are stored securely
- Access of all payments and transactions at the click of a button
Automated VAT management software allows CFOs to quickly access specific data at the click of a button no matter where they are. VAT compliance software also keeps everyone singing from the same hymn sheet as employees across the business are operating from, and contributing to, a single source of truth.
How VATSolve can help improve your compliance?
Streamlining the compliance burden and reducing the time needed by business is important for the efficient working of VAT systems.
Our user-friendly VAT201 and SARS compliance module provides all the intelligence, analytics, and integrity to populate VAT201s with accurate and transparent VAT reporting, management checks and enquiries, giving companies the confidence to know they are paying the correct VAT and reduce the risk of non-compliance.
VATSolve’s software solution provides finance departments and CFO’s a smart VAT solution that keeps internal and external stakeholders, including Revenue authorities, smiling. We offer a VAT solution for all major ERPs that automates and consolidates VAT returns timeously and accurately, resulting in improved cash flow and improved business efficiencies. This all happens in a highly secure environment and provides real-time and historical access to all VAT records with full audit trails at the click of a button. Are you a Tax or Finance Manager representing a R1 Billion + Turnover Group or Company with multiple users?