ERP Software for South African Businesses

SARS plans to adopt a Peppol-based 5-corner model for the e-invoicing framework, similar to the approach used in France and Singapore. E-invoices will be defined as tax invoices that must be issued, transmitted, and received in a structured electronic format allowing automatic processing. Yukti is building Peppol-based e-invoicing capabilities aligned with the SARS framework, ensuring businesses can comply as the mandate rolls out.

South African VAT applies at 15% on most goods and services, with zero-rating for basic food items and certain essential services. VAT vendors must file returns on a bi-monthly basis (every two months), with Category C vendors (turnover above ZAR 30 million) filing monthly. The VAT201 return must be submitted and payment made by the 25th of the month following the tax period. Yukti generates VAT201-ready data with the correct classification of standard-rated, zero-rated, and exempt supplies.

The South African tax year for individuals runs from March 1 to February 28, while companies can choose their financial year end. Corporate Income Tax applies at 27% (reduced from 28% in 2023). Provisional tax payments are required twice yearly, with an optional third payment. SARS requires electronic filing through eFiling for most returns. Yukti integrates with SARS eFiling data formats for income tax and VAT submissions.

Payroll compliance involves PAYE (Pay-As-You-Earn) income tax, UIF (Unemployment Insurance Fund) contributions at 2% (split between employer and employee), and SDL (Skills Development Levy) at 1% of total payroll. The Employment Tax Incentive (ETI) provides a rebate for employers hiring young workers. Yukti calculates all statutory deductions, generates IRP5 certificates for employees, and produces the EMP201 monthly employer declaration and EMP501 bi-annual reconciliation submissions.

Broad-Based Black Economic Empowerment (B-BBEE) reporting, while not strictly a tax requirement, affects procurement and licensing for many businesses. Yukti tracks preferential procurement spending and generates the data needed for B-BBEE scorecard reporting.