Supplier Risk
VAT Vendor Number Validation
Validates supplier VAT registration numbers against invoices claiming VAT.
Why VAT claimed must match a valid vendor registration
Where a supplier charges VAT, the institution may only treat it as valid input if the supplier is a registered VAT vendor and the invoice meets the VAT Act requirements for a tax invoice. Paying VAT to an unregistered or de-registered supplier inflates cost, risks SARS recovery, and can mask fraudulent invoicing that the AGSA and SARS both scrutinise. AuditPro Core validates VAT numbers against invoices claiming VAT so unsupported VAT charges are caught before settlement.
The Numbers
AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.
VAT-Charging Vendors
1,290
Invalid VAT Numbers
58
4.5%
VAT at Risk
R 6.3m
Format Failures
33
VAT Validation Failures by Type
Vendors With VAT Validation Issues
| Supplier | VAT No. | Issue | VAT Claimed (R'000) |
|---|---|---|---|
| Vendor 1310 | 4xxxxx1099 | Deregistered | 820 |
| Vendor 1422 | 49xxxx002 | Invalid format | 540 |
| Vendor 1533 | 4xxxxx7781 | Not registered | 410 |
| Vendor 1640 | 4xxxxx7781 | Duplicate | 295 |
Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.
Registered vendor as a precondition
Only a registered VAT vendor may lawfully charge VAT. An invoice adding VAT from a supplier with no valid VAT number is defective and the VAT portion should not be paid.
Anatomy of a valid tax invoice
The VAT Act prescribes specific fields for a valid tax invoice, including the supplier's VAT number and the words 'tax invoice'. Missing or malformed fields undermine any input-VAT claim.
De-registration and number reuse
A supplier may have been a valid vendor historically but since de-registered. Validation must test current registration, not merely the presence of a plausible-looking number.
How AuditPro Core Bridges the Gap
- Number validation: checks each VAT number for format and registration validity against invoices that claim VAT.
- Invoice-field test: confirms tax invoices carry the prescribed VAT Act fields before VAT is treated as valid.
- Exception workflow: isolates VAT charged by unregistered or de-registered suppliers for recovery or correction.
- Audit-ready export: lists unsupported VAT charges with the underlying invoices for SARS and AGSA review.
Key Takeaways
- VAT may only be claimed where the supplier is a currently registered vendor.
- A valid tax invoice must carry the prescribed VAT Act fields, including the VAT number.
- Historic registration is not enough; test current status to catch de-registrations.
- Unsupported VAT is recoverable cost and a potential fraud indicator.
See This on Your Own Data
AuditPro Core renders this dashboard from your tenant's live, tamper-evident records — every figure traceable to source.