XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks
Country Restriction: ZA only
Risk Type: Tax Risk
Business Function: Purchases
Overview
The “Bill Raised with Supplier Not Registered for VAT” XBert identifies when a bill includes VAT but the supplier is not actively registered for VAT according to the South African Revenue Service (SARS). This helps protect businesses from incorrectly claiming VAT and facing potential penalties or repayments.
What it does
XBert scans bills to detect suppliers who are not currently VAT registered but have bills issued with VAT included. It raises an alert so you can verify the supplier's VAT status before proceeding with payment or reporting the VAT on your return.
How it works
XBert looks for bills that meet the following criteria:
The bill has a status of ‘DRAFT’, ‘SUBMITTED’, or ‘AUTHORISED’.
The total tax amount is greater than zero.
The supplier is matched to a business record in SARS.
The matched business has no active VAT registration.
If these conditions are met, XBert generates an alert showing the supplier’s name, VAT details, and the amount of VAT involved.
Example / Use Case
A bill is entered for R8,250 from a regular supplier. The bill includes VAT of R1,050. XBert scans the supplier details and matches the business to SARS records, discovering that the supplier is no longer actively registered for VAT.
The finance team would have normally claimed the R1,050 as input VAT. However, since the supplier is not VAT-registered, this would result in SARS rejecting the claim, and the business being liable to pay back the R1,050 incorrectly claimed.
Accounting software
Xero, MYOB, QuickBooks
Which countries it supports
South Africa
Processes
This alert falls under Purchases (Accounts Payable) and is designed to help businesses stay compliant with VAT rules and avoid penalties.
To resolve this alert:
Select RESOLVE NOW in XBert to open the bill and supplier record.
Verify the supplier's VAT registration using the SARS VAT search or official contact.
If the supplier is not VAT registered, contact them to request an updated invoice that excludes VAT.
Update the bill in your accounting software to reflect the correct VAT status.
If the supplier becomes VAT registered later, update their contact record accordingly.
Avoid paying VAT to non-registered suppliers and prevent potential issues with SARS by validating supplier information during your review process.