Objectives

The primary objectives of this tender are to:

• Maximize legitimate VAT recoveries and corrections in accordance with applicable legislation.
• Identify historical underclaims, overclaims, duplicate transactions, and incorrect tax treatments.
• Improve the accuracy and integrity of VAT reconciliations and tax reporting.
• Ensure alignment between VAT records, SARS statements, and financial statements.
• Assist in resolving SARS disputes, audits, objections, and appeals.
• Enhance monthly VAT compliance processes and controls.
• Strengthen overall tax governance and compliance within the Municipality.
• Facilitate skills transfer and capacity building for municipal officials.

Scope

The scope of work includes, but is not limited to:

4.1 Historical VAT Review and Recovery

• Conduct comprehensive VAT recovery reviews for up to five years.
• Identify underclaimed input VAT, incorrect treatments, duplicate transactions, and unreconciled balances.
• Review all relevant transactions and documentation.
• Quantify recoveries and prepare revised VAT returns.
• Assist in recovering VAT refunds due to the Municipality.

4.2 VAT and SARS Reconciliations

• Reconcile VAT accounts with SARS statements and general ledger.
• Investigate and resolve reconciling items.
• Prepare reconciliation schedules and supporting documents.

4.3 PAYE and Penalty Review

• Review historical penalties and interest imposed by SARS.
• Assess validity and prepare requests for reduction or reversal.
• Engage SARS and monitor dispute progress.

4.4 SARS Engagement & Dispute Resolution

• Manage SARS audits, verifications, and correspondence.
• Prepare responses, objections, and appeals.
• Attend meetings and provide legal/technical support.

4.5 VAT Compliance Support

• Assist with monthly VAT reconciliations and return calculations.
• Ensure compliance with VAT legislation.
• Support correction of prior errors and account maintenance.

4.6 Apportionment Review

• Review and validate VAT apportionment methodology.
• Calculate ratios, assess mixed supplies, and recommend improvements.

4.7 Financial Statement & Audit Support

• Assist with VAT disclosures and year-end reconciliations.
• Support during external audits and respond to audit queries.

4.8 Document Management & Invoice Compliance

• Review supporting documentation for VAT compliance.
• Identify invalid invoices and assist with corrections.
• Improve record management procedures.

4.9 Skills Transfer & Training

• Provide training workshops on VAT compliance and SARS processes.
• Transfer practical knowledge and develop guidelines.

Technical Requirements

The successful bidder must ensure:

• Compliance with legislation including VAT Act, Income Tax Act, Tax Administration Act, MFMA, and SARS regulations.
• Provision of detailed reports, schedules, and working papers for all activities.
• Effective management of SARS disputes and audits.
• Implementation of document control and record-keeping procedures.
• Transfer of skills through training and capacity building.
• Adherence to quality assurance standards to ensure accuracy and timeliness.

Skills Requirements

The bidder’s team must possess:

• Qualified tax professionals with experience in municipal VAT recovery, SARS dispute resolution, and tax reconciliations.
• Minimum qualification: NQF Level 8 or higher in Taxation, Accounting, Finance, Law, or related fields.
• Relevant professional memberships (e.g., SAIT Tax Advisory) are advantageous.
• Proven experience in municipal taxation and SARS engagements.
• Strong analytical, legal, and communication skills for dispute management and report drafting.
• Capacity to transfer knowledge and conduct training sessions effectively.