Dear valued customers,
During the recent budget speech, it was communicated that the current VAT rate will increase from 14% to 15%, with effect 1 April 2018. Delter IT has catered for the communicated change for any customer that currently charges VAT on their loans. Customers will have the option of amending the rate after the close of business on Saturday 31 March 2018.
Below is the step by step guide to perform the change:
Step 1 – Whilst logged in, choose the Application drop down menu and select the Setup function:
Step 2 – Once in the Setup menu, select the control function and then expand on the General tab by pressing on the + next to it:
Step 3 – With the General tab expanded, proceed to amend the rate on the VAT rate field from 14.00 to 15.00:
Step 4 – Once this has been done, users can go back to the loan admin screen by selecting the Application drop down menu and selecting Loan Administration:
Delter IT strongly recommends that merchants perform a loan test to ensure that the settings have taken effect by manually checking the calculations on the test loan. Should the calculations not appear to be correct, please feel free to contact the Delter IT support desk for further assistance.
A special VAT version will also be released, Delfin version V8.80. This Delfin version will allow customers to:
- Adjust the VAT rate automatically on the first morning after April 2018 to 15% should customers have VAT active on their LMS.
- Amend the method on how Delfin calculates settlements to accommodate for loans calculated on 14% to be settled correctly.
- Change to the VAT report to calculate VAT according to the VAT rate on the loan created date and not the VAT rate used when the report is generated.
Delter IT also recommends that customers perform a sanity check on the first loan granted on 1 April 2018 should they be upgraded to the aforementioned version to ensure that the calculations are updated to 15% VAT.
The release date for this version update will be communicated shortly to all customers.
Some important information with regards to VAT calculations in Delfin:
- All loans created before the rate adjustment will be calculated at 14% even if the future installments are only payable after 1 April 2018. No re-calculations will occur on the future installments.
- Loans created after 1 April 2018 will be the only loans where VAT will be calculated at 15%
- Loans settled or written off will be calculated on the rate which was utilised during the loan creation.
- Any manual VAT changes must only be done after the close of business on Saturday 31 March 2018.
- The update to V8.80 can be done any time after the release date, however, the steps should be followed correctly during the update process. Release date to be communicated.
- If you are outside RSA borders or you are not VAT registered, you are not required to update or amend your VAT setting.
Delter trusts that this matter will receive the urgent attention required and welcome any feedback on this matter. Please raise any requests for different interpretations ASAP as there is limited time to address any additional changes before 1 April 2018.
For further information, please feel free to contact the Delter Support Team on 087 351 5171 or email@example.com
Delter IT Management