NEW VAT DECLARATION TOOL A HEADACHE TO SOME

MBABANE – Some businesses have been reportedly running helter-skelter, trying to adapt and utilise the newly-introduced Value Added Tax (VAT) Declaration Tool (VAT Schedule Template).

The Eswatini Revenue Service (ERS) is implementing a new intergrate revenue administration system called Oracle Revenue Management and Billing (ORMB). The new system will be live and ready for use by ERS staff and clients in December 2023. It was highlighted that the VAT schedule template was introduced in October 2022, where all registered clients were required to submit the template as a supporting document to the VAT return.

This publication had been reliable informed that ERS sent businesses emails in the past weeks informing them about this new system. According to the information sent to the businesses, the VAT declaration tool is changing from a summarised version, which is currently the VAT return to a detailed version being the new VAT Schedule. It was stated that with effect from July 1, 2023, the ERS will accept only the new VAT Schedule available on the ERS website. “No other layout will be accepted (e.g) pdf, word and excel not aligned to the specific VAT schedule,” read the notice.

Attach

ERS told the businesses that between July 1, 2023 and November 30, 2023, clients would still file the VAT return on e-Tax and attach the new VAT schedule. It was further stated that from December 1, 2023, clients would be required to upload only the new VAT schedule on the new system (ORMB). Clients with ERP systems and who may wish to configure them must ensure to align to the specifics of the new layout. ERS said these changes were made to align with best practices for VAT administration and improve ease of VAT filing and accuracy of declarations.

However, the businesses who elected to comment on conditions of anonymity, expressed their frustrations over the matter, stating that they had no problem with changes but their concern was on the short notice. When sought for comment, ERS Director of Communications Vusi Dlamini said they had run series of engagements and training on this new schedule, which they introduced first in October 2022.

Agenda

Dlamini said this was part of the country’s tax digitalisation agenda, where they were trying to make it easier for their clients in the medium to long-term, whom in many cases had demonstrated to face challenges in submitting their VAT returns. He said essentially, this tool would benefit businesses in that, instead of them preparing a VAT return, they would auto-generate it for them once they submit or upload this schedule.

Various

“We are working on this system with various local Tax Practitioners and other business representatives and we encourage all businesses to look at this from a positive angle,” said Dlamini. The director of communications noted that the use of this schedule had been happening for the past months.
He said from an ERS perspective, this new system would also help reduce fraudulent activities related to this type of tax (VAT) as it had been demonstrated even in other jurisdictions that this tax was susceptible to such from unscrupulous people. He said actually in the past few months they had detected such behaviours and recovered more than E100 million of VAT which otherwise would have benefited some of these doggy ‘businesses’ which was unfair to those who comply fully.

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