Tax good-standing PIN for tenders and buyers
How a South African supplier proves its tax compliance to government buyers with SARS's Good Standing PIN, and how to keep that proof valid.
By Achekam · · 4 min read · For Running a business businesses in South Africa
Older tender documents, and some older habits, still ask suppliers to "attach a valid tax clearance for tender purposes". Suppliers who go looking for that option on SARS eFiling find it is not there any more, and wonder what to send instead.
The answer is a PIN. SARS now lets a supplier show its tax compliance to a buyer through a code the buyer can verify for itself, and government buyers also check tax details through the Central Supplier Database. This article explains what replaced the old tender option, how verification works, what keeps you compliant, and where the PIN fits when you assemble a bid.
The Good Standing application replaced "Tender"
SARS says the Tender option for tax compliance status no longer exists. Taxpayers must use the Good Standing application instead. That application gives a PIN, and third parties use the PIN to verify the taxpayer's compliance on eFiling.
Two things follow from that.
- The buyer checks, not you. What you hand over is the PIN. The buyer, or anyone else you give it to, uses it to look up your compliance on eFiling, so your affairs need to be in order whenever they look, not only on the day you asked for the PIN.
- The old wording is out of date. A tender document that still asks for a "tax clearance for tender purposes" is using language from before the change. SARS says taxpayers must now use the Good Standing application.
SARS's page on managing your tax compliance status explains how to request the status and PIN on eFiling, including the Good Standing option used for tenders, and what SARS looks at when it decides whether you are compliant.
How buyers see your tax details on the CSD
For government work, the PIN is not the only route by which your tax position reaches the buyer. National Treasury says the Central Supplier Database is the single source of supplier information for organs of state, and that supplier details are verified with institutions such as SARS, CIPC and Home Affairs.
National Treasury also lists what CSD registration needs: a valid cell phone number for a one-time PIN, an email address, the supplier's ID or registration number, address, directors' details, commodities supplied and, where relevant, bank and tax information. It advises that bank verification may take up to four days, so bank details should be captured in advance to avoid payment delays.
The practical upshot is that your tax details on the CSD and your Good Standing PIN should tell the same story. If one shows a problem, the other probably will too. How to set up and maintain the CSD record is covered in the Central Supplier Database explained.
What "compliant" means, so verification keeps passing
A PIN is only useful if what it reveals is good news. SARS says that to be tax compliant a taxpayer must have:
- No outstanding returns. Every return you are required to file has been filed.
- No outstanding tax debt, unless a payment arrangement or suspension has been agreed with SARS.
- Registration for every tax it is liable for. A business that employs staff without being registered for PAYE, or that has crossed the VAT threshold without registering, falls short here.
- Up-to-date registered particulars. Addresses, banking details, directors and contact details on SARS's records must be current.
A missed return or an unpaid assessment can change your position after the PIN was issued, so treat tax compliance as something to maintain continuously while you are bidding, not something to fix the week before a closing date.
A monthly compliance check for bidders
- Look at your compliance status on eFiling at the start of each month.
- Confirm that every return due in the previous month was filed and paid.
- If a debt has arisen, agree an arrangement with SARS before it affects your status.
- Update SARS and the CSD together whenever directors, addresses or bank details change.
Where the PIN fits in your bid
Most tenders tell you exactly how they want tax compliance shown, so read the returnable documents list first. Where a PIN is asked for, put it where the tender says, and keep a note of the date you last checked your status.
In Achekam, tenders reach the business in two ways. The tender scout reads live adverts from the National Treasury eTenders public data feed and from any public RSS or Atom feed you add, and staff can also enter a tender by hand with its documents. Sources such as CIDB, Transnet and Eskom are shown as not connected; a tender from one of them can be entered by hand.
When the bid is ready, Achekam can e-mail the bid pack to the address the tender prescribes, once a person has confirmed it, and it records delivery and downloads. A colleague still verifies lodgement against the buyer's acknowledgement. The moment a person confirms the pack for sending is the right moment for one last question: is the tax compliance PIN in the pack, and does eFiling still show the business as compliant today?
The rest of the lodging process, from the returnable documents to the buyer's acknowledgement, is explained in lodging a tender bid.
Keep the PIN and the status in step
Request the Good Standing PIN, keep it with your standard bid documents, and check your status on eFiling every month while you have bids open. A clean status and an accurate CSD record do more for a bid than any covering letter about your tax affairs.
General guidance only, not advice on your own circumstances. Tax and payroll rules change: check the current position with the authority or your adviser.
