n IMFO : Official Journal of the Institute of Municipal Finance Officers - The importance of VAT compliance
|Article Title||The importance of VAT compliance|
|© Publisher:||Institute of Municipal Finance Officers (IMFO)|
|Journal||IMFO : Official Journal of the Institute of Municipal Finance Officers|
|Publication Date||Summer 2010|
At this time of the year most municipalities have had their financial audits by the Auditor-General concluded and are hoping for a clean audit report. However, of the total of 283 municipalities in South Africa, 247 submitted audit reports for the 2008/09 financial year. Out of this total, only four municipalities received clean audits. One reason for receiving a qualified report is that the balance in the municipalities' VAT control accounts does not tie up with what is submitted to SARS on the monthly VAT201 forms. Municipalities have to ensure that proper reconciliations are done between the amounts submitted to SARS and those reflected on the system. The VAT Asset / Liability at year end in the annual financial statements should balance with amounts actually received or owed to SARS.
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