Objectives

The primary objective of this tender is to appoint a qualified and experienced service provider to review, recover, and calculate the Value Added Tax (VAT) apportionment percentage and its application for a contract duration of three years. The service provider will manage VAT submissions, analyze gaps in VAT recovery, and improve the municipality’s VAT recovery performance.

Scope

The scope includes:

• Performing a comprehensive review and recovery of both Output and Input VAT across multiple financial years (2020/21 to the current year).
• Ensuring compliance with relevant legislation, including the VAT Act and accounting standards (e.g., GRAP).
• Verifying the accuracy of VAT declared on transactions, financial statements, and sundry income.
• Reviewing and correcting VAT accounting treatments, including Input and Output VAT processes.
• Supporting VAT governance, compliance, and reporting activities.
• Developing and implementing skills transfer and capacity building programs for municipal staff.
• Providing a risk-based commission structure, where fees are linked to actual VAT recoveries achieved.

Technical Requirements

The technical requirements include:

• Provision of VAT recovery services aligned with legislation and accounting standards.
• Review of VAT transactions, ledger entries, and financial statements for the specified years.
• Verification of VAT on standard-rated debtor transactions and sundry income.
• Correction of VAT accounting treatments and processes.
• Strengthening VAT governance through accurate entries, schedules, and audit readiness documentation.
• Registration and compliance monitoring with SARS.
• Implementation of a skills transfer program to enhance internal VAT management capabilities.
• Adoption of a performance-based commission structure, payable only on recovered VAT funds.

Skills Requirements

The successful service provider must demonstrate:

• Experience in VAT recovery services, particularly within municipal environments.
• Proven track record of VAT recovery and compliance, supported by references and previous work experience.
• Registration with relevant professional bodies such as IRBA, SAICA, SAIPA, SARS, or CIMA.
• Qualified personnel, including:
• Project Manager (Chartered Accountant)
• Project Supervisor (Registered Tax Practitioner)
• Consultants with finance-related qualifications (NQF Level 10)
• Capability to develop and transfer skills to municipal staff for sustainable VAT management.
• Ability to implement a risk-based, performance-linked remuneration model.