XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks
Country Restriction: ZA only
Risk Type: Tax Risk
Business Function: Sales
Overview
The “Large VAT Activity for Contact Without VAT Number” XBert identifies contacts in your accounting software that have high VAT activity but no VAT number recorded. This ensures you are not missing key tax information that could impact your VAT return or expose you to compliance risks.
What it does
XBert looks at all contacts with VAT transactions from the past year and flags those with the highest volume of VAT activity that do not have a VAT number on file. It ensures you have the correct information needed to validate the contact’s VAT status and protect your business from incorrectly claimed VAT credits.
How it works
XBert analyses cash-based VAT transactions (both income and expense) across all contacts. It calculates the total VAT activity per contact (not the net), then selects the top 20% with the highest amounts. From these, XBert generates alerts for the top three contacts—only if their total VAT activity is at least R100.
This ensures you only receive alerts for the most critical cases and aren’t overwhelmed with minor or low-value issues.
Example / Use Case
Maxine runs a mechanic shop and regularly buys tyres from Auto Express. Although Auto Express is a valid VAT-registered business, Maxine didn’t record their VAT number in her accounting software. As a result, all VAT from these purchases is being claimed without a traceable VAT number.
XBert detects this issue because Auto Express has one of the highest levels of VAT activity in Maxine’s system. Without correcting this, Maxine risks SARS rejecting her VAT claims or requiring repayment during an audit.
Accounting software
Xero, MYOB, QuickBooks
Which countries it supports
South Africa only
Processes
This XBert falls under Purchases & Payables (AP) and Sales (AR) depending on the VAT activity type (income or expense). To resolve this alert:
Select RESOLVE NOW in XBert to open the contact’s profile.
Request a valid VAT number from the contact if you don’t already have it.
Verify the number using the SARS VAT Vendor Search.
Once verified, update the contact record in your accounting software with the correct VAT number.
Keeping VAT numbers up to date not only ensures compliance with SARS but also helps you avoid penalties and maintain accurate financial records.