Through an alliance partner, we are able to provide you with a service which will assist you through:
- Improved cash flow
- Recovery of lost VAT
- Improved bottom line profitability going forward
- Confirmed internal VAT controls and processes
- Benefits from a risk-free service (payment is on a success only basis linked to your recovery)
Most companies are law-abiding, tax-paying corporate citizens. However, in many countries around the world, not only are VAT laws highly complex, but the systems are designed to ensure that governments generally benefit from errors made in calculating VAT due upon submitting returns.
Errors have resulted in companies losing hundreds of millions of Rands each year, as the task of processing entries is often left to employees not suitable trained or qualified to handle the complexities of certain VAT issues.
In many cases, errors are difficult to identify and as a result companies effectively overpay VAT by not claiming all VAT legally due. The effect of this is to increase the operating expenses of the company, as the unclaimed VAT simply becomes an expense of the business.
The Revenue Service is aware that companies make numerous errors in claiming VAT. However, they do not have to notify companies of any errors and are only obliged to abide by a gazetted prescription period of five years during which time companies are afforded the opportunity to reclaim any VAT due.
Reasons for errors:
- Loss of expertise and consistency due to staff turnover
- High volumes of transactions
- Uncertainty over what constitutes a claimable VAT transactions
- Inaccurate data capture and lack of knowledge
- Dealing with numerous creditors
- Complexity of supplier agreements
- Miscommunication between purchasing and accounting departments
- New accounting systems and procedures