Saturday, 3 March 2018

The dark side of Budget 2018: VAT compliance




Cape Town - It seems as though tax administration and compliance have taken a back seat in the ongoing struggle to fund the revenue shortfall, Marilize Neethling, tax consultant at Mazars, comments on Budget 2018.

"In the past year taxpayers have experienced increased tax administration and compliance issues with the SA Revenue Service (SARS). Run of the mill transactions are queried ad nauseam by SARS in what appears to be an attempt to increase tax revenues," says Neethling.
These queries led to an increased number of IT14SD returns, objections and appeals by taxpayers.
The increase in VAT rate from 14% to 15% is a massive administration headache for VAT vendors, in her view. Vendors will be forced to, among other things, adjust their accounting software, keep track of transactions and invoices dated before and after 1 April 2018, and change displayed prices in store and on websites.
In her view, this will increase costs and the time needed by accounting staff when processing VAT reconciliations in the coming year. Special care will have to be taken with the monthly VAT reconciliations and return completion. Tax invoices received after 1 April 2018 must be distinguished from those received prior to 1 April 2018 and invoices must be checked to ensure they reflect the new VAT rate.

Source:Fin24
Link: https://www.fin24.com/Budget/the-dark-side-of-budget-2018-vat-compliance-20180226
Posted by at

22 comments:

  1. Unknown3 March 2018 at 09:32

    VAT increase affected everyone negatively...

    ReplyDelete
  2. SIFUNDO NJEBEDULANA3 March 2018 at 12:42

    Everyone didn't expect the increase in Vat since it has last escalated in 1993.As a result everyone didn't prepare for the increase and this will have a negative effect towards the people of South Africa.

    ReplyDelete
  3. Unknown4 March 2018 at 02:22

    This comment has been removed by the author.

    ReplyDelete
  4. Unknown4 March 2018 at 02:23

    This comment has been removed by the author.

    ReplyDelete
  5. Unknown4 March 2018 at 02:27

    VAT increase is actually a good thing as it will increase the economic growth of our country and also I think the standard of living will be improved too , so it's nothing to worry about because even the social grant has increased as well.

    ReplyDelete
  6. Unknown4 March 2018 at 05:47

    The implementation of the VAT increase for certain businesses will also be complex, and the implementation date of 1 April does not leave much time to allow businesses to effect the necessary system changes and enhancements.

    ReplyDelete
  7. Unknown4 March 2018 at 06:24

    it is too much work guys

    ReplyDelete
  8. Unknown4 March 2018 at 06:42

    Businessess have a lot of work to do and this can lead to them making errors/omissions because 1 of april is so soon the have to update everything.

    ReplyDelete
  9. September4 March 2018 at 08:33

    It's as though one works just so they can pay their tax.

    ReplyDelete
  10. September4 March 2018 at 08:34

    This comment has been removed by the author.

    ReplyDelete
  11. September4 March 2018 at 08:34

    This comment has been removed by the author.

    ReplyDelete
  12. September4 March 2018 at 08:36

    This comment has been removed by the author.

    ReplyDelete
  13. Unknown5 March 2018 at 03:32

    According to my view VAT increase will affect the buying power of consumers negatively, therefore i am totally against it.

    ReplyDelete
  14. Unknown5 March 2018 at 03:35

    VAT increase is positive to our economy as a country but it affect individuals negatively...

    ReplyDelete
  15. Nonopha Maquthu5 March 2018 at 03:38

    VAT increase isn't a good thing.
    If the government wants to raise funds, he should find other ways to do that...

    ReplyDelete
  16. mazara5 March 2018 at 05:00

    First things first, before an increase in Tax rate Tom moyane must step down, because his is the one responsible for the shortfall in tax revenue

    ReplyDelete
  17. Sisanda_mngqongwa6 March 2018 at 02:23

    I think that VAT increase will affect people who are not financially stable negatively at the same time it will increase economic growth of the country so it has got its advantages and disadvantages.

    ReplyDelete
  18. Sisipho Luminjalo Xuma8 March 2018 at 07:50

    This is just not good for a black community, even though they put in good English that it will benefit the country as a whole, I get that but on the other hand on 8/10 black households will suffer from this VAT increase.

    ReplyDelete
  19. Sisipho Luminjalo Xuma8 March 2018 at 07:50

    This is just not good for a black community, even though they put in good English that it will benefit the country as a whole, I get that but on the other hand on 8/10 black households will suffer from this VAT increase.

    ReplyDelete
  20. Lutho Qakaza9 March 2018 at 06:01

    Increase in VAT is a good measure as it is going to help to stabilize the economy of our country and help the government to fund free higher education

    ReplyDelete
  21. ceeyakayone11 March 2018 at 11:22

    Everyone has been affected by the VAT increase but its worse for those who are financially disadvantaged.

    ReplyDelete
  22. Nokemane.blogspot.com11 March 2018 at 11:53

    Gigaba said" the old age and disability grants will increase from 1600 to 1700 annual" but I don't think it is a good compensation for low income household since the general price level is expected to increase

    ReplyDelete

Subscribe to: Post Comments (Atom)