Since the government announced that the VAT rate will increase to 15>#/b### on 1 April 2018, we are happy to share our implementation process of this change with you. We will facilitate the changeover to make it as convenient as possible for our clients.
It is important to note that the government gazette speaks of the “service date” to determine which VAT rate applies to services rendered and expenses incurred. Furthermore, the Value-Added Tax Act of 1991 refers specifically to rate changes in section 67A. As per normal, we will be sending your invoice on the 1st working day of the new month which is Tuesday, the 3rd of April. Due to the fact that our services were rendered during March, the 14% VAT rate will still be applicable on this invoice even though it will be issued in April.
In our quest to continuously improve, this invoice for services rendered during March 2018 will for the first time be generated by a fully automated process. Although we have left no stone unturned in order to get this right, should you notice any anomalies or have any questions, please contact our finance team at email@example.com.
Further to this, we will also work with GoodX to ensure the correct VAT rate will be applied to practice invoices generated via our Xpedient clouds. As our valued client, you will not have to make any changes to the system, we will facilitate the entire process (please see the GoodX notification below for more information). This will also include any rate changes by medical aids as soon as they are released by medical aids.
We trust you will find the this in order and please feel free to contact us should you have any queries.
GoodX Urgent Notice
GoodX has updated their software versions (7.6, 7.7, 7.8 and 8.0) to accommodate both VAT rates and will use the service date, to calculate the applicable VAT rate.
This means that any service delivered or expense incurred before the change of the VAT rate will accrue 14% VAT and any corrective transaction will reverse or correct the transaction with the same rate, eg credit notes and write off journals, irrespective of the capture date or period. Our VAT report will also change to report on the two VAT rates.Example:An amount billed on 5 April 2018 for service date 30 March 2018 will accrue 14% VAT. If a credit note is done on 10 April 2018, 14% VAT will be written back. The period or capture date will not affect the VAT rate. Only the service date.
Some medical aid administrators have indicated that they are increasing the tariffs to include the extra VAT. The result is that our software is in the process of being updated to have two tariff rates available in one calendar year.We thank you for your patience.