The Link Between SARS Compliance and Your CSD Profile – How Tax Affects Tender Eligibility
If you’re a South African business aiming to win government contracts or supply to state-owned entities, your Central Supplier Database (CSD) profile is one of your most important assets. But here’s a truth many business owners overlook: Without SARS compliance, your CSD profile can’t work in your favour.
In other words – your tax status directly impacts your tender eligibility.
Why the CSD Profile Matters
The Central Supplier Database, managed by the National Treasury, is the official gateway for businesses that want to do business with government.
When you register, your CSD profile holds critical information about your business, including:
- Company registration details
- Banking information
- B-BBEE status
- SARS tax compliance status
Whenever a government department or public entity is considering you for a tender, they verify your details directly from your CSD profile.
The SARS–CSD Connection
Here’s where many get caught off guard:
The CSD pulls your Tax Compliance Status (TCS) directly from SARS. This is done in real-time, meaning that if your tax affairs are not in order, the CSD will reflect your status as “Non-compliant”.
This can happen if:
- You have outstanding tax returns (VAT, PAYE, Corporate Income Tax, Provisional Tax)
- You owe SARS money without an approved payment arrangement
- Your submitted returns have errors or inconsistencies
- You are flagged for compliance review
A Non-compliant tax status = automatic disqualification from most tenders.
Tender Eligibility and Tax Compliance
Government tender rules are strict for a reason — they ensure that businesses benefiting from public funds are fully compliant with national laws.
Under National Treasury regulations, no award may be made to a supplier who is not tax compliant.
In practice, this means:
- Even if you submit the best price and proposal, you won’t be considered if your SARS status is “Non-compliant” on the CSD.
- Your compliance must be up to date at the time of tender submission AND at the time of award.
- Delays in resolving tax issues could cause you to miss opportunities.
How to Stay Tender-Ready
- File all your returns on time – This includes VAT, PAYE, Income Tax, and Provisional Tax (IRP6).
- Settle outstanding amounts or make a payment arrangement with SARS.
- Request your Tax Compliance Status (TCS) via eFiling and ensure it shows “Compliant”.
- Update your CSD profile regularly so all information is current.
- Work with a professional accountant to ensure ongoing compliance.
The Biz Evolution Advantage
At Biz Evolution, we help businesses across South Africa stay SARS-compliant and CSD-ready.
We don’t just fix your current tax issues — we put systems in place so you stay eligible for tenders all year round.
- Tax return submissions (VAT, PAYE, Income Tax, Provisional Tax)
- SARS payment arrangements
- CSD profile updates and compliance checks
- Business registrations and advisory
Final Word
Your SARS compliance status is not just a tax issue — it’s a business opportunity issue.
If your CSD profile reflects “Non-compliant,” you could be losing out on contracts before you even get a chance to compete.
Stay compliant. Stay visible. Stay eligible.
Need help getting compliant and tender-ready?
Email tax@bizevolution.co.za or WhatsApp 082 741 9479.
Let’s make sure your tax affairs never stand in the way of your next big contract.
