Why you need an Integrated VAT Management System

A SAP ERP system is supposed to make your life easier. However, it has one major flaw. 

The lack of VAT reporting in international ERP systems is a potential “headache waiting to happen”, as SARS compliance is an unavoidable reality when running a business in South Africa.

To keep yourself compliant, you – like most organisations – are probably relying on a combination of your ERP system, Excel spreadsheets and a variety of manual processes to capture transactions and generate your VAT201s.  This results in employees being pulled away from core functions to specifically deal with the capturing, collating and cross-referencing of data to ensure the submission is accurate.

But there is an easy way to increase the power of your ERP system, leading to minimised wasted manhours, increased accuracy and a positive impact on your bottom line: an integrated VAT management solution.

Book a free demo on info@vatsolve.co.za

Integrated VAT management saves time

After submitting your Tax return (IT14), SARS will usually ask for a reconciliation of your sales and cost of sales (from the IT14) with the twelve months output and input tax amounts (VAT201s).  This reconciliation is submitted as the IT14SD; a supplementary declaration that also includes PAYE and customs reconciliations.

If you are using the ERP + Excel + manual process method, the gathering of all required data and generation of the information needed for the IT14SD results in time-heavy data-capturing with additional cross-referencing of totals to ensure the submission is accurate.

An integrated VAT management solution stores all information declared on the VAT201 in one centrally located place which can be easily found and accessed by authorized users.

Integrated VAT management increases accuracy

The IT14SD requires you to analyse your output per your VAT201 and then investigate amounts that SARS assumes are sales/turnover, explaining any items which are not disclosed as sales/turnover in your IT14 tax return. There may also be misallocations on your VAT201 which need to be explained, along with genuine items where output tax has been charged but is not allocated to sales/turnover.

Book a free demo on info@vatsolve.co.za

With an integrated VAT management system, you can perform this exercise monthly or quarterly rather than just when SARS requests it (often more than six months after your year-end).  This allows you to identify errors early on and correct them in subsequent VAT periods

Integrated VAT management is a win/win

Not only does an integrated VAT management solution save you time and improve accuracy (making the compiling and submission of your IT14SD quicker) but it helps streamline your processes.  The VATSolve system allows you to pick up the most repeated errors and use them as a springboard to educate and train your users and improve your systems. 

VATSolve is a South African developed system that plugs into your existing SAP ERP.  Designed to automate and consolidate VAT returns that are aligned with South Africa’s VAT regulations, VATSolve increases accuracy and productivity while improving cashflow and decreasing required manhours needed to reconcile VAT related queries from SARS.

We’d call that a win/win, wouldn’t you?

Book a free demo on info@vatsolve.co.za

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