Objectives

The primary objective of this tender is to appoint a service provider to perform comprehensive VAT recovery services for the Rustenburg Local Municipality over a period of 36 months. The services aim to review, recover, and ensure compliance with VAT legislation, thereby optimizing the municipality's VAT recoveries and strengthening VAT governance.

Scope

The scope of work includes:

• Conducting a detailed review and recovery of both Output and Input VAT across relevant financial years (from 2018/19 to the current year).
• Ensuring compliance with applicable legislation, including the VAT Act and relevant accounting standards (e.g., GRAP).
• Reviewing and correcting VAT accounting treatments, including standard-rated debtor transactions and VAT declarations.
• Supporting VAT governance, compliance, and reporting processes within the municipality.
• Providing skills transfer and capacity building through structured training programs.
• Implementing a risk-based approach to VAT recovery, with compensation linked to actual recoveries achieved.

Technical Requirements

The technical requirements include:

• Performing a comprehensive review of Output VAT and Input VAT processes supported by valid documentation.
• Correcting VAT accounting treatments, classifications, and ensuring accurate VAT declarations.
• Strengthening VAT compliance and governance, including monitoring and reporting.
• Supporting the municipality in audit readiness and legislative compliance.
• Developing and executing a Skills Transfer and Capacity Building Programme.
• Providing evidence of prior VAT recovery experience with municipalities, including reference letters and project details.
• Demonstrating expertise in VAT reconciliations, SARS engagements, and VAT audit support.

Skills Requirements

The successful bidder must demonstrate:

• Municipal VAT recovery experience, with evidence of projects valued at R70 million or more, and references from previous clients.
• Professional membership with recognized accounting or taxation bodies such as SAICA, SAIGA, SAIPA, SAIBA, CIMA, or SAIT.
• Relevant experience in VAT recovery, VAT compliance, SARS engagements, and audit support within the local government sector.
• Qualified personnel, including at least two Tax Practitioners with experience in local government VAT processes, registered with the South African Institute of Taxation.
• Personnel with appropriate academic qualifications, such as NQF Level 6 or higher in Financial Accounting, Taxation, or Financial Management.
• Minimum years of experience in VAT review, diagnostics, reconciliations, and related processes, with specific emphasis on local government projects.