The latest release of Pastel Partner and Xpress released today meets SARS' requirements for the issuing of electronic documents.
The South African Revenue Service requires that all electronic tax invoices, credit notes and debit notes meet certain requirements in terms of the VAT Act and Pastel Accounting Version 11 offers user requirement - compliance.
The most important requirement is that documents must be sent in, at least, a 128-bit encryption format - a standard PDF won't do. Not all PDFs are encrypted by default, but Pastel's accounting package upgrade does it automatically when the document is sent. Encrypted PDFs can be recognised by a lock at the top left side of the document.
“Most businesses transact electronically these days, but very few are aware of their obligations in terms of SARS' requirements,” says Steven Cohen, managing director of Softline Pastel. “It is critically important that all business owners, bookkeepers and accountants become au fait with what is expected in terms of electronic documents, and apply it before SARS clamps down, which could potentially result in hefty penalties and interest charges.”
It's not just the encrypted sending that is essential for SARS, and Pastel Accounting meets all requirements. All e-mailed documents are flagged as such and recorded on the audit trail of electronic documents. The necessary appropriate wording is also included on original documents and any follow-up copies.
Also important to note is that customers must agree in writing that they are happy to transact using electronic documents, and Pastel Accounting Version 11 provides a sample of a letter that vendors can send to their customers.
Something that Pastel can't do for its users, but is vital for those transacting electronically, is to ensure that electronic record keeping also meets SARS' requirements. Users must note that both they and the recipient of the electronic tax invoices, credit notes and debit notes, must retain the documents in readable and encrypted form for a period of five years from the date of supply. This holds true the company's accountant too.
“Because Softline Pastel is a South African business, it's essential that our software is always up to date with local legislation. We are thrilled that we can now offer our clients peace of mind when it comes to the correct issuance of electronic tax invoice,” concludes Cohen.
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