The unbearable burden of providing a tax invoice.

I have been a client of Altech Netstar since March 2012. I operate a small farming enterprise and my insurer requires that my delivery vehicles be monitored for driver behavior and for tracking. I personally find the ability to determine the whereabouts of my vehicle at any time from my cellphone, hugely satisfying. On the day after I had the units first fitted, I located one of my drivers 40 kms off his route.

My dealings with Netstar on an administrative level is as frustrating as I find the service itself satisfying. Because the monthly contract fee is a business expense and as I am registered as a VAT Vendor, I require a tax invoice in order to claim the input VAT. Initially I regularly received regular inv oices reflecting my VAT No. Then, at some point the method of invoicing was changed unilaterally by Netstar from snailmail to email. It annoyed me, because now I had to bear the cost of printing the invoice for filing.

That annoyance was nothing compared to what I still had to go through to get an invoice when they suddenly decided to stop sending me an invoice. I proceeded to claim the input VAT, but I know that if you claim VAT for which you cannot produce an invoice compiant with sec20(4) of the VAT Act, SARS demands repayment of the amount claimed, plus 10% interest and 10% penalties.

For that reason every few months I muster the courage and call the Netstar call centre and demand the invoices which they are in any event legally obliged to furnish. For some reason it is an impossible burden for Netstar to bear. They just cannot do it. It takes lengthy calls, plenty of shouting and cussing and then if you are lucky they send you an invoice that do not reflect your VAT number. The fact that previously there was a VAT number is no reason why it should be on now. According to some call centre staffers, their finance dept says I am not entitled to a Tax invoice reflecting my VAT number, because I am a sole proprietor. What hogwash.

Occasionally you get lucky and you find someone like Phetogo Makobelo, who seemingly without effort emails you the last 3 years invoices reflecting all the rquired details. Most of the times you are not that lucky. Since my fortunate run in with Mr Makobelo, Netstar is again in arears with the invoices for August and September. I am due to submit my two monthly VAT return and I require the invoices.

One of my drivers recently wrote off one of my vehicles and the replacement vehicle had to be fitted with a tracking device. Netstar duly talked me into a new 36 month contract for the other vehicles as those agreements have run its course. I agreed, but three weeks later they still have not fitted the new devices. I called earlier today to enquire about the delay. I had to go through the whole process again of agreeing to the terms. I thought it a good idea to also negotiate terms. I required a term that Netstar would furnish me monthly with a tax invoice reflecting my VAT number, failing which they would be in breach and I would be entitled to cancel the agreement. Although the consultant initially agreed, she after consultation told me that I could not dictate terms. That is typical of these businesses. Doing business with them is a one sided affair where only they dictate terms and where only the client can be in breach. They probably think that their financial muscle makes it impossible for any single client to take them on legally.

I am a non practicing attorney on the roll of the KZN law society. I have lots of time on my hands. Nothing stops me representing myself, although they say an attorney who does his own case has a fool for a client, but then I can litigate for free. So I have put them on terms. They have until the end of the month to invoice me for August and September, failing which I will cancel the debit order and then we will argue in court who the party in breach is. I will say it is an imp**** term of the agreement that they fulfill their legal obligation to provide me with a tax invoice compliant with sec 20(4) of the VAT Act, failing which, they are in serious breach entitling me to cancel the agreement. If they supply the invoices in good time, but thereafter do not furnish me timeously with an invoice for any month, I will take the same course of action.