Software solution manages VAT export process

‘Operator needs no expertise’ JOY ORLEK MOVES BY the SA Revenue Service to encourage a culture of compliance with regard to VAT export legislation have motivated the launch of a software solution that manages the entire process. Developed by tax consultants Deloitte, the idea of VATRAX was to develop a system that would assist management in coming to grips with the risks associated with export compliance, says Deloitte’s Severus Smuts. The company has spent the past two years understanding the processes and, in consultation with SARS, created a single, comprehensive tool that highlights areas of non-compliance with the VAT export requirements, says Smuts. “It’s very interactive, incorporating early warnings of outstanding documentation and notification of non-compliant expired invoices. “It’s also a valuable management tool, providing the amount of potential VAT exposure relating to export transactions as and when required.” Another major advantage in the view of joint developer Herman Louw is its ease of operation. “The person operating the system needs no expertise in the field of export VAT. VATRAX interacts through a series of simple prompts, freeing up specialist staff from tedious administrative functions.” According to Louw, exporters are not all aware that VAT compliance requirements relating to the export of goods were extensively amended in November 1998 and they could therefore inadvertently be in contravention of the current rules. This remains a focus area for SARS investigations. “In the light of the problems identified by SARS, many exporters are still not fully compliant,” he said. “We see tremendous potential for the system, regardless of the size of company.” Various options are available, from a compliance model priced at R2 000 a year to a business option at R40 000 and a group option at R80 000, plus 14% VAT.