Panel of VAT recovery and SARS audit support service providers – maquassi hills local municipality (3-Year contract)

Closing date: 05 October 2026, 12h00 PM.

Tender documents available from 18 August 2026.

No compulsory tender briefing.

Tender validity period: 60 days from closing date.

Technical enquiries: Mr T Ngqobe, [email protected], 018 065 0010.

Procurement enquiries: Mrs R Kgobe, [email protected].

Submission address: Tender Box, 19 Kruger Street, Wolmaransstad, 2630.

SCM Office for document purchase: Maquassi Hills Local Municipality SCM Office, 19 Kruger Street, Wolmaransstad, 2630.

Submission method: sealed envelopes marked with contract number MHLM/SCM/05/2026/2027 and the contract description, placed in the Tender Box at 19 Kruger Street, Wolmaransstad, 2630, before the closing time. Tenders submitted by email, telex or fax are not accepted. The document must be completed in ink, with no correction fluid; corrections must be countersigned. Only original hand-written priced tender documents are considered.

Mandatory returnable documents (failure leads to automatic disqualification):

• Proof of registration with the South African Institute of Tax Practitioners.
• Certified CIPC registration document.
• Valid SARS tax clearance certificate.
• Company banking details (letter from bank).
• Updated company profile.
• Municipal account or lease agreement for both company and directors as per CIPC (proof of residence from Tribal Authorities accepted).
• 3-year audited financial statements.
• Certified ID copies of company directors.
• Certified copy of COIDA.
• For joint ventures: separate CSD reports, joint venture agreement, and an undertaking signed by all parties.

Mandatory MBD forms (failure to complete and submit leads to automatic disqualification): MBD 1, MBD 4, MBD 6.1, MBD 6.2, MBD 6.4, MBD 8, MBD 9.

Other requirements: CSD supplier number and unique registration reference number must be provided; tax compliance status verified via CSD. Tender validity period is 60 days from closing date. A copy of the tender deposit receipt must be attached if the document was purchased. Tenderers must complete all data sheets and the tender form in their entirety; where required, documents must be commissioned by a Commissioner of Oaths. Tenderers must sign the Declaration of Municipal Fees declaring municipal fees are in order. The municipality does not bind itself to accept the lowest or any tender and may make partial awards. Tenders may be rejected if they contain conditional or incomplete offers, or if prices are not market-related. Communication with council members or employees regarding the award between closing and notification is prohibited and may lead to disqualification. Combative tendering practices (e.g., fictitious quotations, submitting two tenders) are prohibited and may lead to disqualification. Awards are prohibited to persons in the service of the state or entities with such persons as directors, managers, principal shareholders or stakeholders, or to advisors/consultants contracted with the municipality. Appeals/objections must be lodged within 14 calendar days of the decision, with a fee of 0.5% of the total contract sum or R2,000 (whichever is greater, up to R20,000).

Mandatory returnable documents (failure leads to automatic disqualification): proof of registration with South African Institute of Tax Practitioners; for joint ventures – separate CSD reports and joint venture agreement; certified CIPC registration document; valid SARS tax clearance certificate; company banking details (letter from bank); updated company profile; municipal account or lease agreement for company and directors as per CIPC; 3-year audited financial statements; certified ID copies of company directors; certified copy of COIDA. Mandatory MBD forms: MBD 1, MBD 4, MBD 6.1, MBD 6.2, MBD 6.4, MBD 8, MBD 9.

Two-stage evaluation: Stage One – Functionality (minimum threshold 70 points to qualify for Stage Two); Stage Two – 80/20 Preference Point System per Preferential Procurement Regulations 2022.

Functionality criteria (100 points total):

• Capability: 35 points. Sub-criteria: number of VAT review/recovery appointments by municipalities (1-3 municipalities: 3 points; 4-7: 5 points; 8 or more: 10 points) – proof of signed completion certificate required; amounts recovered from SARS on behalf of a single municipality (R35m or more: 25 points; R10m to less than R35m: 15 points; R5m to less than R10m: 5 points) – evidenced by close-out report/reference letter.
• Skills Transfer and Methodology: 35 points. Skills transfer plan for municipal officials (20 points); detailed technical proposal with methodology and approach (15 points).
• Qualifications & Experience of Proposed Team: 30 points. Qualified Chartered Accountant (CA(SA)) with 8 years' relevant experience (15 points); three team members with NQF 7 or higher qualification in VAT/Tax with 8 years' relevant experience (15 points) – attach CVs, qualifications, years of experience; certified copies of professional membership certificates required.

Stage Two – 80/20 Preference Point System: 80 points for price, 20 points for specific goals. Specific goals and verification: Locality (within Maquassi Hills Local Municipal) – statement of municipal rates and taxes not more than three months; Women – identification document; People with Disability – medical report confirming disability; Youth (18 to 35 years) – identification document.

Priority given to micro and small businesses. The municipality reserves the right not to appoint the lowest bidder based on risk assessment.

Scope: VAT recovery services and SARS audit support for Maquassi Hills Local Municipality for a period of three (3) years.

Services required:

• Comprehensive review and reconciliation of the municipality's VAT returns (past and current) to identify recoverable VAT amounts.
• Identification and recovery of VAT overpayments, input tax not claimed, and other VAT refunds due.
• Preparation and submission of VAT correction documents, refund claims, and supporting schedules to SARS.
• Full support and representation during SARS VAT audits, including preparation of audit files, attendance of meetings with SARS officials, negotiation and objection processes.
• Recovery of amounts that would otherwise be assessed as payable.
• Advisory services on VAT compliance, best practices for municipalities, and training of municipal staff.
• Monthly VAT compliance reviews and correct submissions/declarations to SARS.
• Monthly/quarterly reporting on progress/status, recoveries made, and risk areas identified.
• Any other VAT-related services reasonably required.

Detailed requirements:

• VAT review: review of current VAT treatment in the accounting system, examination of general ledger for unclaimed VAT, calculation of apportionment percentage for 3 years, application of recalculated percentage to mixed supply expenses.
• VAT recovery: review of VAT treatment of equitable shares and grants, comprehensive written report on findings, working papers handed over.
• VAT reconciliations: reconcile input and output figures from general ledger with VAT 201 returns, investigate differences.
• VAT input reconciliation: line-by-line general ledger transactions, identify instances where VAT was not accounted for, retrieve incorrect/lost invoices from suppliers, recover VAT charged by non-VAT vendors.
• VAT output reconciliation: detailed breakdown of debtor's sub-ledgers, verify income with bank statements.
• Detailed VAT review process: thorough review of general ledger control accounts, review of VAT report from financial system, investigation of accounting system flagging/coding, establish impact of over/under claimed input and output, address unresolved issues (equitable share, conditional grants), calculate required VAT adjustments, transfer skills to municipal staff.
• VAT apportionment percentage review: analysis of current computation, recalculate ratio for 3 years, create Excel models, provide detail workings for Auditor General and SARS, assist in completing VAT returns, liaise directly with SARS.
• Methodology and procedures must ensure savings and exposures are 100% verifiable to third parties (SARS, Auditor General) and comply with the VAT Act.

Contract period: Three (3) years effective from date of appointment.

Contingency fees fixed for contract period, no escalation.

Penalties: 5% of commission claimable deducted per calendar day for late completion.

Place of delivery/coordination: 19 Kruger Street, Wolmaransstad, 2630.

Mandatory requirements:

• Submit a skills transfer plan.
• Project manager must be registered with SAICA or IRBA.
• Financial statements for 3 years, staff compliment and organogram.
• Certified proof of membership and certified copies of qualifications.

Insurance: Third Party Liability and Professional Indemnity Insurance, kept in force for full contract duration.

Compliance with legislation: Labour Relations Act, Basic Conditions of Employment Act, Income Tax Act, VAT Act (Section 17), MFMA, Municipal Systems Act, Municipal Supply Chain Management Regulations 2005, PPPFA 2002, Preferential Procurement Regulations 2022, SCM Policy.

OHSA: Annexure B must be completed indemnifying the municipality.

Council's liability and indemnity: Service provider indemnifies council against all losses and claims; council not liable for direct/indirect damages or losses, negligent/innocent misrepresentations, or changes in legislation.

Assignment and subletting: Not permitted without written consent.

Sequestration/liquidation: Council may terminate contract summarily without compensation.

Secrecy of information: Information in tender document is confidential.

Law to apply: South African law; disputes settled in South Africa.

Patent rights: Service provider pays all royalties and holds council indemnified.

Contract conformity: Subject to all applicable laws and by-laws.

Methodology and approach for the recovery services and audit support is a functionality criterion (15 points out of 35 for Skills Transfer and Methodology). A detailed technical proposal with methodology and approach must be submitted. The methodology must ensure savings and exposures are 100% verifiable to third parties (SARS, Auditor General) and comply with the VAT Act. Skills transfer plan for municipal officials is required (20 points), explaining how it will be done and measured. The verification process includes VAT reconciliations, input/output reconciliations, detailed VAT review, and apportionment percentage review with Excel models.

Mandatory: Proof of registration with South African Institute of Tax Practitioners. Project manager must be registered with SAICA or IRBA. Three team members with NQF 7 or higher qualification in VAT/Tax with 8 years' relevant experience. Certified proof of membership and certified copies of qualifications must be submitted. Financial statements for 3 years, staff compliment and organogram required.

Functionality scoring for qualifications and experience (30 points): Qualified Chartered Accountant (CA(SA)) with 8 years' relevant experience (15 points); three team members with NQF 7 or higher in VAT/Tax with 8 years' relevant experience (15 points). Attach CVs, qualifications, years of experience. Certified copies of professional membership certificates or certified confirmation of registration required to claim points. The team structure must remain as submitted for the duration of the project; any movement of team members must be communicated with municipal officials.

The methodology and procedures applied during the verification process must ensure that savings and exposures identified are 100% verifiable to any third party (SARS or Auditor General). Procedures must comply with the VAT Act. A comprehensive written report on findings must be submitted, identifying risk areas, internal control weaknesses and recommendations. Working papers of all relevant calculations must be handed over to the municipality. Excel models and detail workings for apportionment calculations must be provided for the Auditor General and SARS.

Pricing is on a contingency fee basis – the municipality pays no fees unless savings are identified, and shares a percentage of the amount saved. The tenderer takes the risk if no savings are identified. Contingency fees are fixed for the contract period with no escalation. Prices, rates or percentages quoted must include all costs (materials, plant, labour, patent rights, royalties, freight, insurance, customs, railage, delivery, etc.) unless stated otherwise. Tendered rates must be market-related; non-market-related rates may lead to rejection. The pricing schedule must be completed in ink with corrections countersigned; all amounts arithmetically checked and correct totals carried forward to the summary page and tender form.

Pricing: Contingency fee basis – the municipality pays no fees unless savings are identified, and shares a percentage of the amount saved. The tenderer takes the risk if no savings are identified. Contingency fees are fixed for the contract period with no escalation.

Prices, rates or percentages quoted must include all costs (materials, plant, labour, patent rights, royalties, freight, insurance, customs, railage, delivery, etc.) unless stated otherwise.

Tendered rates must be market-related; non-market-related rates may lead to rejection.

Tender document purchase fee: R2,000 (including VAT), non-refundable, payable in cash, bank guaranteed cheque or EFT. A copy of the receipt must be attached if purchased.

Appeal/objection fee: 0.5% of total contract sum or R2,000 (whichever is greater, up to R20,000), payable in cash or bank guaranteed cheque.

Insurance: Third Party Liability and Professional Indemnity Insurance required, kept in force for full contract duration.

Mandatory registrations and certificates:

• Proof of registration with the South African Institute of Tax Practitioners.
• Certified CIPC registration document.
• Valid SARS tax clearance certificate (not expired) or tax compliance status verification PIN.
• CSD registration – provide CSD supplier number and unique registration reference number; tax compliance status verified via CSD.
• Certified copy of COIDA (Letter of Good Standing).
• Company banking details (letter from bank).
• Municipal account or lease agreement for company and directors as per CIPC (proof of residence from Tribal Authorities accepted).
• 3-year audited financial statements.
• Certified ID copies of company directors.
• For joint ventures: separate CSD reports and joint venture agreement.

Mandatory MBD forms: MBD 1 (Invitation to Bid), MBD 4 (Declaration of Interest), MBD 6.1 (Preference Points Claim), MBD 6.2 (Declaration for Local Production and Content), MBD 6.4, MBD 8 (Declaration of Bidder's Past SCM Practices), MBD 9 (Certificate of Independent Bid Determination).

Other compliance:

• Project manager must be registered with SAICA or IRBA.
• Three team members with NQF 7 or higher qualification in VAT/Tax with 8 years' relevant experience.
• Skills transfer plan required.
• Declaration of Municipal Fees must be signed.
• No awards to persons in the service of the state or entities with such persons as directors, managers, principal shareholders or stakeholders, or to advisors/consultants contracted with the municipality.
• Compliance with all applicable legislation (Labour Relations Act, BCE Act, Income Tax Act, VAT Act, MFMA, Municipal Systems Act, Municipal SCM Regulations, PPPFA, Preferential Procurement Regulations 2022, SCM Policy).

Annexure B – Occupational Health and Safety Act must be completed, indemnifying the municipality of any claims arising under the OHSA. The service provider indemnifies the council and its employees and agents against all losses and claims for injuries or damages to any person or property arising from execution of the contract.

Contract period: Three (3) years effective from date of appointment. Contingency fees fixed for contract period, no escalation. Penalties: 5% of commission claimable deducted per calendar day for late completion. Insurance: Third Party Liability and Professional Indemnity Insurance required for full contract duration. Service provider indemnifies council against all losses and claims. Council not liable for direct/indirect damages, negligent/innocent misrepresentations, or changes in legislation. Assignment and subletting not permitted without written consent. Council may terminate contract summarily without compensation upon sequestration/liquidation of service provider. Information in tender document is confidential. Contract governed by South African law; disputes settled in South Africa. Service provider pays all royalties for patent rights and holds council indemnified. Contract subject to all applicable laws and by-laws. No formal agreement signed; letter of acceptance and tender documents constitute binding agreement. Tenderer waives any conflicting conditions on its stationery. Domicilium citandi et executandi: council at 19 Kruger Street, Wolmaransstad, 2630; tenderer as per tender form. Either party may change domicilium with one month's written notice.

The appointment of the bidder will be subject to successful signing of the GCC document. The appointment will be subjected to price negotiations in line with 2022 Preferential Procurement Regulations. The municipality reserves the right not to appoint the lowest bidder based on risk assessment. The municipality does not bind itself to accept the lowest or any tender and reserves the right to accept the whole or any part of a tender. Partial awards may be made where in the best interests of the council. The municipality seeks to advance micro businesses and small businesses.

The service provider is expected to deliver, but not limited to: comprehensive review and reconciliation of the municipality's VAT returns (past and current) to identify recoverable VAT amounts; identification and recovery of VAT overpayments, input tax not claimed, and any other VAT refunds due; preparation and submission of VAT correction documents, refund claims, and supporting schedules to SARS; full support and representation during SARS VAT audits; recovery of amounts that would otherwise be assessed as payable; advisory services on VAT compliance and training of municipal staff; monthly VAT compliance reviews and correct submissions/declarations to SARS; monthly/quarterly reporting on progress/status, recoveries made, and risk areas identified; any other VAT-related services reasonably required.

Two-stage evaluation: Stage One – Functionality (100 points, minimum threshold 70 points to qualify for Stage Two); Stage Two – 80/20 Preference Point System per Preferential Procurement Regulations 2022. Functionality criteria: Capability (35 points), Methodology & Approach (35 points), Qualifications & Experience of Proposed Team (30 points). Priority given to micro and small businesses.