For the first time in 25 years, South Africa will witness a VAT rate increase from 14% to 15% effective April 2018.
While this will add close to R23 billion to the fiscus, according to Finance Minister Malusi Gigaba, it will also mean enterprises have to deal with fiscal changes and tech upgrades to their critical business systems.
Now it is the ideal time to prepare for the fiscal change and adjust it in your ERP system.
Microsoft Dynamics NAV is a popular option to streamline routine accounting practices with automated financial processes. Enterprises can set up multiple VAT rates using VAT posting groups and general posting groups.
VAT rates can be changed to accommodate accurate VAT reporting in Dynamics NAV. Manually updating this information in the VAT posting groups is cumbersome and time-consuming.
Companies usually have thousands of journals and documents where the change needs to be reflected, plus there are data implications that need to be considered. The changes will need to be implemented in general ledger accounts, customers, vendors, and so on.
Switching the entire system to a new VAT rate requires updating the VAT and general posting groups, and carefully define the parameters that need to be updated.
Luckily, there are useful tools where the change can be successfully implemented and makes it possible for customers and partners to accommodate changes in VAT rates with a minimum amount of time and costs.
As a result, VAT changes can be rolled out fast (no point waiting until April to have it done). This way, your enterprise can remain compliant with local VAT regulations at all times without delays.
Strategix, a Microsoft Certified Partner, can assist your enterprise with implementing all the VAT changes required in your Dynamics NAV system in just one day.
Focus on business and higher value project while we assist you with your VAT system updates – fast and accurate.