VAT RATE UNCERTAINTY: AN ADMIN DISASTER WAITING TO HAPPEN?
As far as can be discerned, it seems unlikely Parliament will decide on whether to adopt the VAT rate increase announced in the National Budget on 12 March 2025 and indeed approve the announced effective date of 1 May 2025, before 1 May 2025. Not much has been said about what the administrative impact will […]
POP: Bursting the bubble to your input tax claim
Is proof of payment a requisite to an input tax claim? It is trite in law that a vendor registered for value-added tax on the invoice basis is permitted to claim input tax, in the tax period in which supplies are made to him per the provisions of section 16(3) of the Value-Added Tax No. […]
VAT ON IMPORTED SERVICES: WHAT IS IT?
There seems to be an increased focus from SARS recently on non-VAT registered entities who enlist services from foreign suppliers. The reason for this is likely that, in most cases, there may be some VAT to be collected by SARS from these South African entities. It appears though, few people, especially those who are not […]
The VAT Compliance Landscape
VAT use to be a simple tax for taxpayers to comply with. Returns would go in regularly with very little hassle and SARS’ audits or verifications seldom resulted in an assessment. Not anymore. With VAT fraud being more prevalent now than ever before (at least that is what we are told), all taxpayers are seemingly […]
VAT registrations: Non-resident non-executives
On 4 May 2017 SARS issued Binding General Ruling No. 41 (“BGR41”) which requires of non-executive directors to register for VAT provided they satisfy the registration threshold and other requirements. Whilst the principles involved for South African resident NED’s are straight forward and fairly simple, for non-resident NED’s this is not necessarily the case. BGR41 […]
CLAIMING VAT BEFORE VAT REGISTERED
It is trite that only a registered VAT vendor is entitled to an input tax credit, provided all requirements for an input tax credit has been satisfied by that vendor. But what is the position where goods have been acquired before VAT registration and VAT was paid at the time – can the VAT on […]
ONUS OF PROOF, VAT AND INPUT TAX
A trend has emerged recently with SARS relying more heavily on the onus of proof provisions (Section 102 of the Tax Administration Act, No. 28 of 2011, (“the TAA”)) to raise assessments on taxpayers, especially to disallow input tax credits for VAT purposes. While it is indeed well within SARS’ power to rely on section […]
MORE TAX: VAT ON FUEL
The declining economy has seen an increase in costs of pretty much everything and consumers are finding it hard to come by. There is, unfortunately, more bad news for consumers around the corner. Whilst at least not another reshuffle, the former Minister of Finance proposed in the 2017 National Budget to add VAT to the […]
GOING CONCERN SALES AND THE SELLERS RISK
The legislation governing the zero rate for going concern sales are set out in section 11(1)(e) of the Value-Added Tax Act, No. 89 of 1991 (“the VAT Act”). In addition, SARS in their Interpretation Note 31, prescribes the documents that seller must be in possession of to place reliance on the zero rate for the […]