XBert Type: Standard
Accounting Software: Xero
Country Restriction: ZA only
Risk Type: Tax Risk
Business Function: Purchases
Overview
The "VAT has been claimed on a bill without a VAT number on attachment" XBert identifies instances where a bill over R500 has had VAT claimed, but the scanned tax invoice (attached to the bill) does not contain a VAT number. This check ensures that only valid tax invoices are used when claiming VAT credits from SARS.
What it does
This XBert looks for submitted, authorised, or paid bills over R500, dated in the last three months, that do not contain a valid VAT number in their attached documents. If VAT is claimed on such a bill, an alert is generated so that you can review whether the VAT should be reclaimed.
How it works
XBert scans the attachments associated with bills in your accounting software. When a VAT amount is claimed but the attachment does not include a valid VAT number, XBert raises an alert. This is especially important for compliance with South African Revenue Service (SARS) rules, which require a valid VAT number for VAT claims to be legitimate.
Example/Use Case
Steve owns a printing business and enters a bill in Xero from Bob’s Burgers. He claims VAT on this bill and attaches the supplier's invoice. However, the scanned invoice does not show a VAT number. In this case, XBert raises an alert, flagging the potential issue. If audited, Steve may be asked to provide a valid tax invoice to justify the VAT claim—or risk having to repay the VAT.
Accounting software
Xero only.
Which countries it supports
South Africa only.
Processes
This XBert falls under the 'Compliance' category and specifically addresses risks related to VAT accuracy on supplier bills. To avoid issues:
Always check that scanned or uploaded bill attachments include the supplier’s VAT number.
Only claim VAT when the supplier has issued a compliant tax invoice.
Regularly audit bills to ensure supporting documents meet SARS standards.