In this episode of the !Engage Connected Communities podcast, host Philip de Bruin, joined by VAT expert Mornay Schafer and PhoenixERP project director Cornel Ebersohn, tackles VAT complexities in local government.
They discuss apportioning input VAT for taxable, exempt, and zero-rated activities, referencing Section 17 of the VAT Act and SARS's updated ruling requiring apportionment calculations by September.
Mornay emphasises robust internal controls and systems to simplify compliance, reducing reliance on costly consultants.
Cornel highlights proactive planning and using systems like PhoenixERP for supplier verification and compliance with mSCOA.
They address risks like supplier non-compliance and share strategies like regular VAT number vetting and prioritising non-VATable income allocations to optimize cash flow.
A must-listen for municipalities aiming to streamline VAT processes and stay compliant.