On 13 and 14 May 2026, MaxProf attended the SALGA National Municipal Managers (MM) Forum, held at the City of Johannesburg Council Chambers, as a sponsor. The South African Local Government Association (SALGA) remains a strategic partner to MaxProf, playing a critical role in strengthening municipal oversight and supporting sustainable service delivery across the country.
MaxProf aligns closely with SALGA’s mandate, recognising that alternative revenue generation within local government remains a pressing challenge. As part of its commitment to strengthening municipal finances, MaxProf continues to advocate for improved VAT recovery mechanisms for municipalities.
For the 2025/26 financial year, the South African Revenue Service (SARS) collected R2.010 trillion in taxes, of which domestic VAT contributed R604.0 billion, reflecting a 7.6% increase from the previous year. SARS further reported that VAT refunds amounting to R371.1 billion were paid, representing a year-on-year increase of R5.6 billion (1.5%). Notably, growth assumptions for VAT refunds were revised downward from 5.4% in Budget 2025 to 1.6% in Budget 2026. This shift suggests a widening gap between anticipated VAT refunds and the amounts actually recovered by organisations, including municipalities.
SARS has concurrently intensified its VAT compliance drive within the municipal sector, initiating full-scope audits across more than 200 municipalities. Through focused syndicated crime investigations, verification processes, and investigative audits, SARS estimates that approximately R75 billion in potential revenue leakage has been prevented. These efforts reinforce a clear commitment to enforcing VAT compliance, accuracy, and accountability.
With over 25 years of experience in municipal VAT legislation, MaxProf is well positioned to support local government entities in navigating this increasingly complex regulatory environment. At a time when municipal finances are under sustained pressure, MaxProf continues to facilitate critical conversations and provide practical solutions aimed at improving financial sustainability.
The SALGA National MM Forum also unpacked the Structures Amendment Act, which seeks to enhance governance within local municipalities, particularly in the context of coalition governments. Effective local governance is a shared responsibility, and MaxProf remains committed to contributing meaningfully to this agenda.
Through its specialised VAT recovery services, MaxProf assists municipalities in strengthening compliance, mitigating the risk of costly SARS assessments and penalties, and unlocking much-needed cash flow. In doing so, MaxProf plays a vital role in ensuring that municipalities are better equipped with the financial resources required to deliver on their service mandates.
