The South African Revenue Service (SARS) has announced that electronic invoicing (e-invoicing) will become mandatory by 2028. This change is part of their ongoing VAT modernisation strategy – and it will have a big impact on how businesses handle their invoices and tax reporting.

What is E-Invoicing?

E-invoicing is a digital way of sending and receiving invoices between suppliers and customers in a standard electronic format. It removes the need for paper-based invoices and allows for faster, more accurate, and more secure processing of tax-related transactions.

Many countries around the world already use this system – and now South Africa is following suit.

Why is SARS Making This Change?

The main goal of SARS’s VAT modernisation initiative is to improve tax compliance, reduce fraud, and allow for real-time reporting of VAT transactions. With e-invoicing, SARS will have immediate access to invoice data, making it easier to monitor and enforce VAT regulations.

Why Your Business Should Act Now

Although the change is only mandatory in 2028, SARS is encouraging businesses to start preparing early. Here’s why:

• Improve compliance: Stay ahead of tax audits and reduce the risk of errors or penalties.
• Increase efficiency: No more paper or manual processes – e-invoicing saves time and cuts costs.
• Better cash flow: Faster processing can mean quicker payments.
• Gain a competitive edge: Early adopters will be ahead of the curve.

How to Prepare Your Business

At PATC, we recommend the following steps to get your business ready for this change:

• Review your current accounting system – Is it ready for e-invoicing?
• Upgrade your software – Invest in compliant e-invoicing solutions that align with SARS’s future requirements.
• Train your team – Make sure staff understand the new processes.
• Stay informed – Keep up with SARS updates and timelines.

Contact PATC Today

At PATC, we’re committed to helping you navigate this change with confidence. Whether you need support with Tax Compliance, VAT Reporting, or implementing new accounting technology, our experienced team is ready to assist.

Contact us today and let us know how we can help you.

Now read: Understanding VAT Increase and its Implications

As we step into the new financial year, it’s the perfect time to get your books in order. Whether you’re running a small business or managing personal finances, good bookkeeping habits are essential. Let’s walk through a few best practices that will help you stay organised, stay compliant, and set yourself up for financial success this year.

1. Keep Your Records Updated

Start by checking that all your financial transactions from last year have been recorded. This includes:

• Bank and credit card statements
• Invoices and receipts
• Payroll records
• Loan or finance agreements

Keeping these documents organised and up to date now can save you from a headache during tax season. If you update your records regularly, you’ll always have a clear view of your financial position.

2. Reconcile Your Bank Accounts Monthly

Make it a habit to reconcile your bank statements with your bookkeeping records at least once a month. This helps you catch errors early and keeps your financials accurate. It’s also a good way to detect any unauthorised transactions.

3. Don’t Mix Personal and Business Finances

If you’re a business owner, separating your business and personal finances is a must. Having separate bank accounts makes it easier to track business performance, simplifies tax prep, and avoids unnecessary confusion.

4. Use the Right Accounting Tools

Manual books work, but accounting software can make your life so much easier. It reduces errors, automates routine tasks, and gives you real-time insights. If you’re unsure what software is right for you, we can help you choose one that fits your needs.

5. Stay on Top of What You’re Owed (and What You Owe)

Keep a close eye on accounts receivable and payable. Make sure you’re following up on unpaid invoices and keeping track of your own payment deadlines. This helps you avoid cash flow issues and keeps your relationships with clients and suppliers strong.

6. Review Your Financials Regularly

Take time each month or quarter to review your income statement, balance sheet, and cash flow. These reports help you spot trends, assess your progress, and plan ahead.

7. Don’t Wait Until Tax Season to Think About Taxes

It’s best to plan for taxes throughout the year. Set aside money regularly for tax payments and keep records of deductible expenses. Being proactive helps you avoid surprises and makes the year-end process much smoother.

8. Ask for Help When You Need It

You don’t have to do it all on your own. Our team is here to help you stay on track, keep your books clean, and advise you on how to make your money work better for you.

Contact PATC Today

If you are looking for a reliable, cost-effective, and flexible accounting solution, look no further than PATC’. Contact us today to learn more about how we can help you achieve your financial goals. Take advantage of our one-hour *free consultation now.

If you need assistance in your business’ finances, from accounting to tax consulting and financial management, we can help you. Contact us today and let us know how we can help you.

Now read: Understanding VAT Increase and its Implications

The South African government has announced a forthcoming increase in the Value-Added Tax (VAT) rate, set to rise from the current 15% to 15.5% on 1 May 2025, with a subsequent increase to 16% on 1 April 2026. This staggered approach replaces the initially proposed 2% hike and aims to balance revenue generation with economic stability.

What This Means for You

• Higher Cost of Goods and Services

The incremental VAT increase will lead to a slight rise in the prices of everyday items and services. For example, a product currently priced at R100 will cost R100.50 after the first increase. While this may seem minimal, it’s essential to adjust your budget to accommodate these changes.

• Impact on Businesses

If you own or manage a business, you’ll need to update your pricing structures and accounting systems to reflect the new VAT rates. Ensuring compliance with these changes is crucial to avoid potential penalties.

• Economic Considerations

The government anticipates that the gradual VAT increase will bolster public finances without significantly dampening consumer spending. Staying informed about these changes can help you make better financial decisions.

How to Prepare

• Review Your Budget

Anticipate minor increases in expenses and identify areas where you can adjust your spending.

• Update Business Systems

Ensure your invoicing and accounting systems are configured to apply the new VAT rates accurately.

•  Stay Informed

Keep abreast of official announcements regarding VAT changes to ensure timely compliance.

How We Can Help

Navigating tax changes like VAT increases can be overwhelming, but you don’t have to do it alone. Our team of experts is here to help you every step of the way.

We offer:

• Personalised VAT Impact Assessments– We’ll analyse how the VAT increase affects your specific financial situation or business operations.
• Strategic Business Planning– If you’re a business owner, we can help you adjust pricing strategies and tax compliance processes to minimise disruptions.
• Ongoing Compliance Support– Ensuring your business stays up to date with SARS requirements and tax regulations.
• Cost-Saving Tax Strategies– Helping you find tax-efficient solutions to mitigate the impact of the VAT increase.

Contact PATC Today

If you are looking for a reliable, cost-effective, and flexible accounting solution, look no further than PATC’. Contact us today to learn more about how we can help you achieve your financial goals. Take advantage of our one-hour *free consultation now.

If you need assistance in your business’ finances, from accounting to tax consulting and financial management, we can help you. Contact us today and let us know how we can help you.

Now read: Provisional Tax in South Africa

2026 tax year in South Africa introduces several important changes that will impact both individuals and businesses. As a taxpayer, it’s crucial to stay informed about these updates to ensure compliance and optimise your financial planning. Understanding these shifts can help you avoid penalties, take advantage of available incentives, and streamline your tax obligations.

Key Tax Deadlines You Need to Know

• Provisional Tax: The first provisional tax payment deadline is 31 August 2025, with the second payment due by 28 February 2026.
• Personal Income Tax Returns: The tax filing season for individual taxpayers is expected to open in July 2025 and close in November 2025.
• Corporate Tax Submissions: Businesses must file their annual tax returns within 12 months of their financial year-end.

Staying ahead of this deadline is essential to maintain compliance and avoid penalties.

What’s Changing in 2025?

1. Revised Personal Income Tax Brackets: Tax brackets are being adjusted to accommodate inflation. This means that lower-income earners could see some relief, while higher-income earners may experience adjusted tax obligations. Understanding how these changes affect your taxable income is essential. 
2. Potential VAT Increase:A VAT increase from 15% to 15.5% for the 2026 Tax Year (with discussions on a further 0.5% for the 2027 Tax Year) has been implemented, this could impact both consumers and businesses, making it essential to adjust your budget and pricing strategies accordingly.
3. Enhanced SARS Compliance Measures: The South African Revenue Service (SARS) is intensifying its focus on tax compliance through advanced audit and tracking systems. This means stricter enforcement on tax evasion, unreported income, and incorrect filings. Ensuring your tax affairs are in order has never been more important.
4. Expanded Small Business Tax Incentives: New tax relief measures for small businesses aim to encourage growth and sustainability. If you run a small business, understanding these benefits could help you reduce your tax liability and reinvest in your company.
5. Retirement Fund Tax Adjustments: The ‘Two-Pot’ Retirement System’ is being introduced, allowing partial withdrawals while ensuring long-term savings security. Knowing how this impacts your retirement planning can help you make informed decisions.

How You Can Stay Ahead and Remain Compliant

• Stay Updated: Regularly check SARS announcements and updates to ensure you are aware of any new regulations or adjustments.
• Keep Your Records in Order: Maintain well-organised records of income, expenses, deductions, and supporting documents to make tax filing smoother.
• Leverage Digital Tools: Use SARS eFiling and cloud-based accounting software to manage your tax submissions more efficiently.
• Consult a Tax Professional: Tax laws can be complex, and any missteps could be costly. Seeking expert guidance can help you navigate the 2025 tax landscape effectively.

How We Can Help You

Navigating the ever-evolving tax environment can be overwhelming, but you don’t have to do it alone. Our team of experts is here to help you:

• Understand how the 2025 tax changes affect you or your business.
• Optimise your tax planning to minimise liabilities.
• Ensure compliance with SARS to avoid unnecessary penalties.
• Take full advantage of tax relief options and incentives.

Contact PATC Today

If you are looking for a reliable, cost-effective, and flexible accounting solution, look no further than PATC’. Contact us today to learn more about how we can help you achieve your financial goals. Take advantage of our one-hour *free consultation now.

If you need assistance in your business’ finances, from accounting to tax consulting and financial management, we can help you. Contact us today and let us know how we can help you.

Now read: Provisional Tax in South Africa

In South Africa, not all companies are required to have their financial statements audited.

However, under the Companies Act 71 of 2008, certain businesses must comply based on their structure, financial position, or Public Interest Score (PIS).

Failing to comply with audit requirements can result in penalties, reputational damage, or even legal consequences.

Below is a detailed look at which companies are required to have an audit and why understanding these regulations is essential for business compliance.

Who Must Have an Audit?

1. Companies Holding Fiduciary Assets

A profit or non-profit company that, primary activities, holds assets exceeding R5 million in a fiduciary capacity (on behalf of others who are not related to the company) must be audited. Examples include:

• Investment and trust companies
• Fund managers
• Administrators of retirement funds
• Businesses managing client deposits or financial assets

This requirement exists to ensure transparency and accountability.

2. Non-Profit Companies That Meet Certain Criteria

 Non-profit companies must be audited if they were incorporated:

• Directly or indirectly by the state, a state-owned entity, an international entity, or another company
• Primarily to perform a statutory or regulatory function under any legislation
• For a purpose related to a statutory or regulatory function

For example, a government-funded NGO handling significant public funds would likely require an audit to ensure financial integrity.

3. Companies With a High Public Interest Score (PIS)

A company’s Public Interest Score (PIS) determines whether an audit is needed. The PIS is calculated annually based on factors such as turnover, employees, third-party liabilities, and beneficial ownership. Here’s how it applies:

• PIS of 350 or more → Audit is compulsory
• PIS between 100 and 349 → If financial statements are internally compiled, an audit is required. If externally compiled, an independent review may sufficient 

4. Public Companies

All public companies, whether listed on a stock exchange or unlisted, are legally required to have their financial statements audited. This ensures financial transparency, especially for shareholders and investors.

5. Companies Where the Memorandum of Incorporation (MOI) Requires an Audit

Even if a company does not meet the regulatory audit thresholds, it must still be audited if its Memorandum of Incorporation (MOI) specifies this requirement. Companies may choose to include an audit requirement in the MOI to enhance credibility, especially if they seek investors, funding, or international partnerships.

What If Your Company Doesn’t Require an Audit?

If your company does not meet the audit requirements, you may still need to undergo an independent review. An independent review is a lower level of assurance than an audit but still involves financial statement verification by a qualified accountant or independent reviewer. Independent Reviews Are Required For:

• Private companies with a PIS between 100 and 349, where financial statements are externally compiled.
• Owner-managed businesses that chooses to undergo voluntary reviews for investor confidence.

Why Does This Matter?

• Compliance → Non-compliance can result in legal penalties, SARS investigations, and reputational damage.
• Trust & Transparency → Audited financials enhance investor and stakeholder confidence.
• Strategic Planning → Understanding PIS thresholds helps businesses plan for future growth and compliance needs.

Even if your company is not legally required to have an audit, obtaining audited financial statements can boost credibility, attract investors, and improve financial management.

Contact PATC Today

If you are looking for a reliable, cost-effective, and flexible accounting solution, look no further than PATC’. Contact us today to learn more about how we can help you achieve your financial goals. Take advantage of our one-hour *free consultation now.

If you need assistance in your business’ finances, from accounting to tax consulting and financial management, we can help you. Contact us today and let us know how we can help you.

Now read: Provisional Tax in South Africa

As the Provisional Tax deadline approaches, it’s important to ensure you’re fully prepared to avoid any last-minute stress or penalties. The second provisional tax payment for the 2025 tax year is due on 28 February 2025. In this blog, we’ll provide key insights on how to stay compliant with SARS regulations and make sure your submission is smooth and timely.

Key Steps to Prepare for the Deadline

To avoid interest charges and penalties, follow these steps to stay on track:

1. Submit Your Tax Estimates
   Ensure your tax estimates are submitted before the deadline. This is crucial to help SARS calculate your provisional tax accurately. Submitting the correct estimate will help you avoid underpayment or overpayment issues.
2. Make Payments Before 26 February
   To avoid any last-minute delays, ensure that your payment is made by 26 February 2025. This gives you ample time for processing, reducing the risk of any late payment penalties.

Why Provisional Tax Matters

Failing to submit an accurate tax estimate or missing the payment deadline could lead to penalties and interest charges from SARS. It’s essential to understand the importance of complying with these regulations to avoid unnecessary financial strain.

Need Assistance with Your Provisional Tax Submission?

If you’re unsure about your provisional tax submission or need guidance, our team is ready to assist you. We can help you review your tax position and ensure you’re fully prepared for the upcoming payment deadline.

Contact us today to schedule a consultation and get your tax matters in order before the deadline approaches. Avoid the stress of last-minute filings and ensure a smooth tax season.

Now read: How to protect yourself from scamming