Ezulwini – The Eswatini Revenue Service (ERS) has issued a public notice alerting businesses in the wholesale and retail sectors about an ongoing VAT compliance review and monitoring exercise.

The initiative forms part of efforts by the revenue authority to ensure a fair, transparent and equitable application of tax laws across the country. Businesses have been reminded of their legal obligations under the Value Added Tax Act 2011, which requires taxpayers to submit accurate and reliable VAT returns.

ERS said taxpayers who may have submitted incorrect VAT returns through omission or commission should take the opportunity to correct them immediately.

According to the revenue body, preliminary analysis has already identified several violations of the VAT Act by some taxpayers. These include inflation of input VAT on inventory and expenses, overstated refund claims, and misrepresentation of sales which leads to suppressed output VAT.

The authority also cited abuse of preferential treatment status such as CRM, AEO and Green Channel clearance provided by ERS.

ERS warned that these violations constitute offences under the VAT Act and may attract several sanctions under the legal framework.

Possible penalties include cancellation of VAT registration under Section 8 of the Act, imposition of a double tax penalty under Section 72 and prosecution under Section 64.

ERS Commissioner General Brightwell Nkambule said the institution remains committed to supporting compliant taxpayers while strengthening a culture of integrity, fairness and accountability in the national tax system.

Businesses requiring further information have been encouraged to contact ERS directly.

ERS VAT Compliance notice