Pastel Evolution is Aligned to SARS’ Requirements for E-Documentation

October 2011

The South African Revenue Service requires that all electronic invoices, credit notes and debit notes meet certain requirements in terms of the VAT Act and Pastel Evolution offers users requirement-compliance.

Mohammed Mosam, divisional director says, “The most important requirement is that documents must be sent in, at least, a 128-bit encryption format– a standard PDF won’t do.” Not all PDFs are encrypted by default, but Pastel’s Evolution program does it automatically when the document is sent. Encrypted PDFs can be recognised by a lock at the top left side of the document.

Most businesses transact electronically these days but very few are aware of their obligations in terms of SARS’ requirements. It is critically important that all business owners, book keepers and accountants become au fait with what is expected in terms of electronic documents and apply it before SARS clamps down which could potentially result in hefty penalties.

“It’s not just the encrypted sending that is essential for SARS and Pastel Evolution meets all requirements,” says Mosam. All emailed documents are flagged as such by the program and recorded on the audit trail of electronic documents. The necessary appropriate wording is also included on original documents and any follow up copies.

Also important to note is that customers must agree in writing that they are happy to transact using electronic documents with their suppliers.

Something that Pastel can’t do for its users but is vital for those transacting electronically is to ensure that electronic record keeping also meets SARS’ requirements. Users must note that both they and the recipient of any electronic invoices, credit notes and debit notes must retain the documents in readable and encrypted form for a period of five years from the date of supply.

Because Softline Pastel is a South African business it’s essential that its software is always up to date with local legislation. Clients can rest assured that when it comes to the correct use of electronic documents, they are 100% covered.