Cloud-based accounting software provider Xero has made a significant announcement for those thinking about next year’s tax season, as the company has launched an eFiling trial with the help of the South African Revenue Service (SARS).
The new offering will be added to Xero’s suite of cloud-based services in Q1 of next year, with it designed specifically to assist small businesses and accountants manage VAT.
“The three new VAT cloud tools will allow businesses to prepare, store and submit VAT returns to SARS from the Xero platform. Processing VAT can be one of the biggest pain-points for businesses and a significant drain on resources. Technology has gone some way towards easing this, but until now the process could still be disjointed,” explains the company regarding the announcement.
The new tools are: VAT Return Form, VAT Late Claims and eFiling. Xero adds that VAT Return and Late Claims are live now, with eFiling in a closed beta trial and set for general release in Q1 2021.
“This is a game-changer for accountants and small businesses in South Africa and will give them one simple workflow. We’ve worked closely with tax bodies in other markets – like the UK and Australia – to support their drive towards digitisation in the tax industry. These new tools will be a much needed boost for digitisation in SA, in line with SARS’ agenda and that of the wider government,” notes Colin Timmis, country manager for South Africa at Xero.
“This is a great step forward in the wider industry’s mission to set Professional Accountants up for the future and with the right tools to embrace 4IR. Professional Accountants have an essential role to play in the future of SA’s economy, and digitisation of processes like VAT will be vital in enabling this,” adds Shahied Daniels, chief executive of the South African Institute of Professional Accountants (SAIPA).
The Xero VAT tools will be available at no additional charge to all accountants and bookkeepers on the Xero Partner Programme and all small business subscribers.
To find out more about the tools, head here.