Major VAT Improvements Are Coming to payPod

We're excited to announce a major upgrade to how VAT is handled in payPod - one that brings us in line with SARS requirements and provides you with accurate, professional VAT201 reporting based on the accrual method.

We know that VAT compliance is a critical part of running your business, and we want to thank you for your patience while we’ve been improving this aspect of the platform. The truth is, our current VAT tools have been too limited for too long. As your business grows, so should your software - and this upgrade is designed to meet the standards that your business and SARS both expect.

What's Changing?

VAT selection on invoices and documents will now be a drop-down listing the various VAT codes (see below):

Here's a preview of the key improvements:

• Ability to add bills (supplier invoices) and track VAT on bill line items
  This addition is necessary to track VAT for purchases.

• VAT201 Reports that match SARS fields exactly
  Easily generate VAT201 reports with the correct field numbers and tax breakdowns - ready for submission or reconciliation.

• Support for a full range of VAT types
  Including standard-rated, zero-rated, exempt, exported goods, imported services (reverse charge), second-hand goods, bad debt adjustments, and more.

• Accrual-basis reporting
  VAT is now reported based on the invoice and bill dates - not when payments are made - in line with how SARS expects businesses to report.

• Expanded tax codes per line item
  Apply precise tax codes to each invoice or bill line item, giving you full flexibility and accuracy.

• Clearer separation of input and output VAT
  Better tracking of what you owe SARS vs. what you can claim back - including support for capital and non-capital goods.

• Import and export support
  Correctly account for services or goods imported from or exported to other countries.

What This Means for You

This is a significant upgrade and will require a few changes to how you assign tax codes to invoices (and now bills). But the benefits are clear:

• Better compliance
• More accurate reporting
• Easier VAT filing
• Peace of mind

We’ll be publishing a full guide on how to use the new VAT tools, and we’re always here if you need help.

No Action Yet - But It’s Coming Soon

This new VAT system is in its final testing phase and will be rolled out in the coming weeks.

For now, please review the new resources page for this new feature.

Thanks again for using payPod. These improvements are an important step forward, and we're confident they’ll make your life easier, your books cleaner, and your business stronger.

- The payPod Team