- Modernizing South Africa’s VAT system can boost the country’s economy
- Businesses can contribute to improving the country’s fiscus by modernizing their VAT reporting systems
- South Africa’s current VAT compliance gap is estimated to be between 5% to 10% per annum
- Sars’ revenue collection contributes to over 90% of the government’s consolidated budget
- South Africa’s fiscus is losing between R22bn and R50bn per year through VAT leakage
- Real-time VAT control through standardized e-invoicing systems can reduce fraud and increase tax revenue
- Similar models have been successfully implemented in the European Union, Brazil, Mexico, Italy, Chile, and Mexico
Source: zawya.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
