XBert Type: Standard
Accounting Software: Xero
Country Restriction: ZA only
Risk Type: Tax Risk
Business Function: Contacts
Overview
The "Business has incorrect VAT status" XBert identifies when a supplier’s VAT registration details in your accounting software do not match their actual registration status on SARS. This alert helps ensure VAT is only claimed from suppliers with valid VAT registration and prevents compliance issues with the South African Revenue Service.
What it does
XBert checks all active supplier contacts in your accounting system that are configured to allow VAT claims. It then cross-references those contacts with the SARS registry to confirm if the supplier is still actively registered for VAT. If the contact is not registered for VAT but you’ve had VAT activity with them, this alert is triggered.
How it works
XBert identifies suppliers who meet the following criteria:
The supplier is active in your accounting platform.
The supplier is configured with a payable tax type (e.g., INPUT2).
The supplier has been matched with a SARS business record.
The VAT registration status on SARS is not active.
The supplier has had journal activity (e.g., bills or transactions involving VAT).
XBert checks if you’ve been claiming VAT from this supplier, and flags the issue if the supplier should not be charging VAT.
Example / Use Case
Your business has worked with a supplier for several years, and historically they were VAT registered. However, due to recent changes, they’ve been deregistered for VAT by SARS.
Unaware of the change, your team continues entering bills with VAT from this supplier, expecting to claim those amounts as input tax credits. SARS may later reject these credits and require repayment, potentially along with penalties.
By identifying this issue early, XBert helps your team confirm the correct VAT registration status and avoid costly errors.
Accounting software
Xero
Which countries it supports
South Africa
Processes
This alert falls under the Compliance category and focuses on VAT registration accuracy for supplier contacts. To resolve this alert:
Click RESOLVE NOW in XBert to view the flagged supplier.
Confirm the supplier’s VAT registration status on SARS using the VAT Number Lookup tool.
Update the contact record in your accounting software with the correct VAT details.
If necessary, request revised invoices without VAT from the supplier.
Review any VAT that may have been incorrectly claimed and take corrective action (e.g., adjust VAT returns or seek refunds).
Do not continue claiming VAT from suppliers not actively registered for VAT.
Taking these steps ensures your VAT reporting remains accurate and compliant, avoiding future financial or regulatory risk.