ERS VAT Schedules Now Mandatory for VAT Submissions

Ezulwini – Businesses registered for Value Added Tax (VAT) are now required to submit their returns via the TaxEase platform using VAT Schedules instead of the traditional VAT Return. This transition enhances accuracy, improves tracking of VAT reporting, and facilitates timely processing.

The Eswatini Revenue Service (ERS) has announced that, effective 1 February 2025, strict compliance with VAT Schedule submission will be enforced. Although this requirement was initially introduced in October 2022, adherence has been inconsistent. The VAT Schedule offers multiple benefits for both VAT-registered businesses and the ERS, ensuring improved reporting and streamlined verification processes.

What is a VAT Schedule?

A VAT Schedule is a detailed, line-by-line report that VAT-registered businesses must submit. It itemizes all sales (outputs) and purchases (inputs) for a specific period, whether monthly or quarterly. The schedule is prepared in an Excel spreadsheet, following an approved format that is available for download on the TaxEase filing platform.

Unlike the traditional VAT Return, which only summarizes the total VAT due or refundable, the VAT Schedule provides a comprehensive breakdown of each transaction, including:

• Customer/supplier name and Taxpayer Identification Number (TIN)
• Invoice numbers and dates
• Transaction amounts

Enhancing Accuracy and Transparency

ERS Director of Communications and Marketing, Ntobeko Dlamini, emphasised that the introduction of VAT Schedules aims to improve accuracy and transparency in VAT reporting.

“VAT Schedules allow for better tracking and verification of transactions, significantly reducing the risk of errors and fraud. Additionally, they facilitate the timely processing of submissions and help businesses maintain thorough and compliant records. This not only simplifies audits but also minimizes potential disputes with the ERS,” she explained.

Dlamini added that the ERS has supported businesses throughout the transition, previously allowing alternative filing methods in case of system challenges. However, VAT Schedules are now mandatory for all VAT-registered businesses.

HOW TO STAY COMPLIANT AND AVOID PENALTIES?

To ensure compliance and avoid penalties, VAT-registered businesses are advised to track their transactions regularly and maintain up-to-date records.

1. Download and Update VAT Schedules in Advance

• Businesses should download the VAT Schedule template from the TaxEase platform and save it on their systems.
• Update the schedule continuously as transactions occur to prevent last-minute rushes on the filing deadline.

2. Submission Deadlines

• Monthly filers: VAT Schedules and payments must be submitted by the 27th of every month.
• Quarterly filers: VAT Schedules and payments must be submitted by the 27th of the month following the quarter.

3. Maintain Accurate Records

• Keep detailed transaction records
• Conduct regular internal audits
• Use reliable accounting software
• Stay informed about changes in VAT regulations

4. Penalties for Non-Compliance

Failure to file a VAT Schedule correctly or on time will result in:

• Penalties for failure to file.
• Late payment interest charges at 2% per month or part thereof.
• Interest on outstanding VAT balances until payment is made.

Dlamini emphasized that timely and accurate submissions are critical to avoid penalties and ensure compliance.

ERS’ SUPPORT FOR CLIENTS DURING THE TRANSITION

The ERS continues to provide resources and assistance to help businesses adapt to VAT Schedule requirements.

“Since introducing VAT Schedules, the ERS has supported businesses through online guides, tutorials, radio programs, and customer support services. We encourage clients to reach out whenever they need guidance,” said Dlamini.

Clients can receive support from the ERS through any of our channels:

• Visit an ERS Service Centres nearest to them.
• Call our Contact Centre at 24064050,
• Message ERS on WhatsApp: 76063735,
• Send an email to info@ers.org.sz.
• Follow us on Facebook, LinkedIn and YouTube
• Visit our website www.ers.org.sz
  
  

Workshops and Training Sessions

To further support businesses, the ERS is conducting physical engagements, online training, and workshops to ensure businesses understand and comply with VAT Schedule requirements.

HOW TO SUBMIT A VAT SCHEDULE VIA TAXEASE

By following these steps, VAT-registered businesses can stay compliant, avoid penalties, and benefit from improved tax reporting accuracy.

1. Log in to the TaxEase platform using your credentials.
   1. Navigate to the VAT Schedule submission section.
   1. Select the correct submission period.
   1. Download new schedules whenever filing.
   1. Capture and upload your detailed schedule.
   1. Your uploaded schedule will populate your return summaries.
   1. Review the uploaded data for accuracy.
   1. Submit the VAT Schedule and receive a confirmation receipt.

For further assistance, visit www.ers.org.sz or contact the ERS via the provided channels.