A new functionality has been added for SMEs in order to comply with domestic reverse charge (DRC) regulations for VAT on valuable metals. This aligns with Sage’s commitment to helping businesses streamline their operations through automation, ensuring seamless adherence to tax regulations and actively combatting widespread VAT fraud and avoidance prevalent in the gold trade.
Mark Customers & Suppliers as ‘Subject to DRC VAT’ to enable transacting with the DRC Tax Type. This extra measure will ensure that you are compliant in terms of applying this new VAT type to VAT registered vendors only.
Easily draw Domestic Reverse Charges VAT Statements from the application to issue to your suppliers that reflect all the necessary and important details.
Process your DRC Input VAT Adjustments in the application. From start to finish all DRC related transacting and reporting has been fully automated and integrated leaving nothing for you to manually account for.
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Domestic Reverse Charges (DRC) is a VAT regulation Gazetted on 8 June 2022, for companies that deal with valuable metal. Valuable metal can be classified as any goods containing gold in the form of jewellery, bars, blank coins, ingots, buttons, wire, plate, granules, solution or residue, including related goods and service.
The DRC Regulations are an anti-avoidance measure designed to counter criminal attacks on the VAT system and malpractices identified in the valuable metals industry.
The DRC regulations require VAT registered companies to pay the VAT on their purchases of valuable metal, as defined, from VAT registered companies directly to SARS before claiming it back from SARS.
Within SBCA and Sage 50, we have built in a reporting module that will make it easier for our customers to record and report on this type of VAT within the product. This functionality will assist companies that deal with valuable metals to stay complaint when preparing VAT submissions to SARS.
Hebert Banhire
Director, Banhire Consulting Ltd
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