The South African Revenue Service (Sars)’ proposed Value-Added Tax (VAT) Modernisation Project is geared to combat challenges faced by traders, businesses, and Sars, including compliance inefficiencies, the risk of errors, and tax evasion.
Phase 1 will entail inserting key definitions into the VAT Act, including “e-credit note”, “e-debit note”, and “interoperability framework”.
While this VAT Modernisation Project clearly aligns with Sars’ strategic objectives of making voluntary compliance easy, and non-compliance both hard and costly, the streamlined process will also benefit taxpayers, reducing reliance on time-consuming paper-based invoicing and reconciliations.
Although this particular project is still at the proposal stage, Sars has successfully implemented a number of other “Compliance Projects” and collection drives.
Sars modernisations in the
age of automation
Sars’ compliance success, in this age of automation, can…