BURS estimates VAT gap at 40%
Mbongeni Mguni | Friday March 27, 2026 12:40
Speaking at the Tax Pitso last week, the tax veteran said the gap meant that a substantial portion of revenue that should be funding national priorities is not being realised. He added that no system, law, or institution could address the situation on its own and rather a collective shift was required in how the nation engages and looks at tax.
Valashia said paying tax must be understood to be a national contribution, civic duty and a practical expression of patriotism that sustains public service, rather than a mere legal obligation.
He added that there have been system gaps, integration challenges, inconsistencies in processes, delays in resolution and weakness in governance that have allowed the VAT gap to persist.
Part of the challenge involves perceptions that the tax system is complex or uneven in its application. The BURS is due to introduce an e-billing solution for VAT which is expected to tighten collections, which this year are projected at P15.1, from an estimated P13.7 billion in 2025-2026.
The e-billing solution however is expected to rollout in April 2027 and as of now, a draft technical design has been completed, setting out the minimum functional and technical requirements for the solution. Valashia said an Expression of Interest would be issued shortly to invite the market to propose solutions.