Supplier Risk
VAT Number Validation on Vendors
Validates supplier VAT numbers and detects VAT charged by unregistered or de-registered vendors.
Why VAT status is an audit concern
When a vendor charges VAT it is not registered to collect, the state effectively pays a 15 percent surcharge that can never be recovered as input tax, and the AGSA flags this as both a financial loss and a vendor-master control weakness. Validating VAT numbers against the SARS register is a basic but frequently neglected control with direct fiscal consequences. AuditPro Core validates supplier VAT registration and detects tax charged by unregistered or de-registered vendors so the organisation stops paying for VAT it cannot claim.
The Numbers
AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.
Vendors With VAT No.
942
of 1,284
Invalid VAT Numbers
61
6.5%
VAT Charged Unregistered
R 4.9m
▲ R 1.1m
De-registered Active
17
VAT Validation Outcomes
VAT Charged by Unregistered Vendors
| Vendor | VAT Status | VAT Charged (R'000) |
|---|---|---|
| Vendor 771 | De-registered | 1480 |
| Vendor 803 | Invalid number | 920 |
| Vendor 845 | Not registered | 640 |
Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.
The VAT registration test
A valid VAT number follows a defined format and must be active on the SARS register. A correctly formatted number is not enough; the registration must be live for the vendor to lawfully charge VAT.
De-registration risk
A vendor can be registered at onboarding but de-registered later. Continuous checking catches the case where VAT continues to be charged after the registration has lapsed.
Input tax recoverability
VAT charged by an unregistered vendor cannot be claimed as input tax, so the full amount is an unrecoverable cost. The exposure compounds across every invoice from that vendor.
Vendor master hygiene
VAT errors usually point to wider vendor-master weaknesses such as unverified onboarding. Fixing the VAT field is often the entry point to broader data cleanup.
How AuditPro Core Bridges the Gap
- Register validation: tests each vendor's VAT number for format and active SARS registration.
- Continuous monitoring: re-checks status so de-registered vendors still charging VAT are caught quickly.
- Exception workflow: invoices with VAT from invalid vendors are held for correction before payment.
- Audit-ready export: quantifies unrecoverable VAT exposure by vendor for the financial statements.
Key Takeaways
- A formatted VAT number means nothing unless the registration is active.
- Re-check status to catch vendors de-registered after onboarding.
- VAT from unregistered vendors is an unrecoverable cost, not input tax.
- VAT errors are usually a symptom of weak vendor-master controls.
See This on Your Own Data
AuditPro Core renders this dashboard from your tenant's live, tamper-evident records — every figure traceable to source.