Municipal VAT and Accounts Payables Training

The programme

Programme overview

Effective management of Value-Added Tax (VAT) and Accounts Payables is critical to ensuring municipal financial compliance, audit readiness, and sound governance. Municipalities operate within a complex legislative and regulatory environment requiring strict adherence to the Municipal Finance Management Act (MFMA), VAT legislation, GRAP standards, and National Treasury mSCOA requirements.

This programme provides municipal finance professionals with practical knowledge and applied skills to manage VAT and payables accounting accurately and compliantly. The course focuses on the full procure-to-pay cycle, VAT treatment of municipal transactions, financial reporting requirements, audit preparation, and risk mitigation strategies.

Participants will gain hands-on experience in VAT calculations, reconciliations, mSCOA transaction posting, invoice validation, and compliance monitoring. The programme emphasises real-world municipal scenarios, enabling participants to strengthen internal controls, reduce audit findings, and improve financial governance and service delivery accountability.

Who should attend

Who is this programme for?

• Municipal Finance Officials
• Accounts Payable Clerks and Supervisors
• VAT and Revenue Officers
• SCM Practitioners
• Internal Auditors and Finance Managers

Learning outcomes

What you will learn

• Interpret and apply legislative and regulatory requirements governing municipal VAT and payables, including MFMA, VAT Act, GRAP standards, and National Treasury regulations
• Apply VAT principles correctly within municipal operations, including classification of supplies, input VAT eligibility, apportionment methods, and VAT treatment of grants, infrastructure projects, and imported services
• Manage and monitor the full municipal procure-to-pay cycle, ensuring compliant invoice processing, accurate creditor management, and adherence to payment regulations and internal control requirements
• Record, reconcile, and report VAT and accounts payable transactions accurately using GRAP standards and mSCOA posting structures (Chart Version 7.1), including preparation of VAT201 returns and supporting financial schedules
• Identify VAT and accounts payable risks, implement control measures, and prepare audit-ready documentation to minimise irregular expenditure, audit findings, and statutory penalties
• Strengthen ethical financial management practices and implement process improvements, automation, and data monitoring tools to enhance compliance, transparency, and operational efficiency

Explore the programme

Detailed programme outline

• Municipal Finance Legislative and Regulatory Framework MFMA (Sections 62, 65, 68, 71) and Municipal Systems Act financial governance implications VAT Act (89 of 1991) municipal-specific provisions Current Treasury Regulations, including MFMA Circular No. 132 (December 2025) and Circular No. 134 (March 2026), the most recent municipal budget and reporting circulars Auditor-General expectations and common findings
• Overview of Municipal VAT and Input VAT Essentials VAT registration of municipalities; enterprise vs. non-enterprise activities Standard-rated, zero-rated, and exempt municipal supplies (rates, refuse, sewerage, housing) VAT on grants and subsidies (conditional vs. unconditional) Input VAT eligibility, apportionment methods, and the reverse charge mechanism for imported services
• Accounts Payables End-to-End and VAT Compliance Requisition, SCM approval, three-way matching, and the 30-day payment rule Valid tax invoice requirements (Section 20), debit/credit notes, and timing of VAT claims Segregation of duties and fraud prevention in the payables cycle
• mSCOA, GRAP, and Current Reporting Updates mSCOA Chart Version 7.1: current structure (Item, Project, Function, Funding, Region) and the important changes introduced in this version National Treasury's updated 2025/26 mSCOA Specimen Annual Financial Statements, with closer data string alignment between the GoMuni upload portal and final presented AFS VAT201 completion, VAT control reconciliation, and common AGSA findings on VAT and payables Developing a practical improvement plan to take back into your municipality

5-Day Comprehensive Training Modules

• MFMA (Sections 62, 65, 68, 71)
• Municipal Systems Act – Financial governance implications
• VAT Act (89 of 1991) – Municipal-specific provisions
• Treasury Regulations and MFMA Circulars, including the current MFMA Circular No. 132 (December 2025) and Circular No. 134 (March 2026)
• Auditor-General expectations and common findings
• Practical Focus: Mapping legislation to daily AP and VAT processes
• VAT registration of municipalities
• Enterprise vs non-enterprise activities
• Standard-rated vs zero-rated municipal supplies
• Exempt supplies (rates, refuse, sewerage, housing)
• Deemed supplies and fringe benefits
• VAT on grants and subsidies (conditional vs unconditional)
• Case Study: VAT treatment of electricity, water, and refuse services
• Input VAT eligibility rules
• Apportionment methods (turnover-based, cost-based)
• Mixed supplies and partial exemption
• VAT on capital expenditure and infrastructure projects
• VAT on donor-funded and grant-funded projects
• Reverse charge mechanism (imported services)
• Practical Exercise: Input VAT calculation and apportionment workbook
• Requisition, SCM approval, and commitment accounting
• Goods receipt and three-way matching
• Invoice validation and compliance checks
• Payment terms (30-day rule)
• Interest and penalties on late payments
• Creditor master data management
• Control Focus: Segregation of duties and fraud prevention
• Valid tax invoice requirements (Section 20)
• Simplified tax invoices
• Debit and credit notes
• Incorrect VAT charged by suppliers
• VAT on advance payments and deposits
• Timing of VAT claims (invoice vs payment basis)
• Practical Workshop: Reviewing real-life supplier invoices for VAT compliance
• GRAP 1 – Presentation of Financial Statements
• GRAP 12 – Inventories (VAT implications)
• GRAP 13 – Leases (VAT and payables interaction)
• GRAP 17 – Property, Plant and Equipment (VAT capitalisation)
• Recognition and measurement of payables
• VAT receivable and VAT payable accounting
• Aligning journal preparation with National Treasury's updated 2025/26 mSCOA Specimen Annual Financial Statements
• Journal Entries: Month-end and year-end VAT and AP journals
• mSCOA Chart Version 7.1: current structure (Item, Project, Function, Funding, Region) and the important changes introduced in this version
• VAT posting logic under mSCOA
• Creditor control vs expense accounts
• Capital vs operating classification
• Common mSCOA posting errors flagged by Treasury
• Practical Exercise: mSCOA coding of AP and VAT transactions
• VAT201 completion for municipalities
• Reconciliation: VAT control vs VAT201
• Input/output VAT reconciliation
• Creditor age analysis and reconciliation
• Month-end and year-end close procedures
• Supporting schedules for audit, aligned with the 2025/26 mSCOA Specimen AFS data string alignment requirements
• Practical: Full VAT return preparation using sample data
• Common AGSA findings on VAT and payables
• Fruitless and wasteful expenditure
• Irregular expenditure linked to AP failures
• Audit evidence and documentation standards
• SARS audits and VAT verifications
• Case Study: AGSA management letter findings and corrective actions
• Ethical risks in AP and VAT environments
• Consequence management
• Process automation and system controls
• Data analytics for AP and VAT monitoring
• Continuous improvement frameworks

Learning approach

How you will learn

Our diverse instructional approaches ensure effective learning:

– Lectures & Presentations: Engage with expert-driven, stimulating content.– Course Material: Access well-crafted supporting resources.– Group Work: Collaborate on discussions and case studies for practical insights.– Workshops & Role-Play: Participate in immersive, scenario-based activities.– Practical Application: Focus on applying theoretical knowledge in real situations.– Post-Training Support: Receive extensive support after training for skill implementation.

Discuss your requirements

Dates, duration & arrangements

Contact Ratomac to confirm dates, duration, delivery format, entry requirements and any applicable assessment or certification before booking.