Zero rate and standard rate VAT on export of goods

Section 11(1)(a) of the VAT Act (the rate of zero per cent), applies where the supplier has supplied the goods (being movable goods) in terms of a sale, or an instalment credit agreement, and the supplier has exported the goods in the circumstances contemplated in paragraph (a), (b) or (c) of the definition of “exported” in section 1(1).  The definition […]

5 Top tips to use during a SARS VAT Verification

Following a discussion with fellow senior employees at the MMS Group we felt it necessary to share some essential tips regarding the SARS VAT verification process. It is essential that the correct documents are submitted within the correct timeframe. If you do not submit the correct information or insufficient information or you submit the documents late, SARS can: Change the […]

Non-Executive Directors (NEDs): Have you registered for VAT?

SARS recently published two Binding General Rulings (number 40 and 41) that have put the tax treatment of non-executive director’s fees to bed, which will come in effect on 1 June 2017. As it stands, a Non-Executive Director (NED) earning more than R1 million in director’s fees in any 12-month period should register for VAT. What will happen when the […]

SARS releases new ruling on documentary requirements for VAT purposes

In February 2015 the South Atlantic Jazz Festival (Pty) Ltd successfully appealed a judgment of the Tax Court to the Full Bench of the Western Cape High Court (reported as ABC (Pty) Ltd v CSARS [2015] ZAWCHC 8). That judgment dealt with documentary proof required by the Commissioner for SARS to substantiate input tax claims submitted by taxpayers for VAT […]

Transfer of a property: is VAT or Transfer Duty payable?

A purchaser is responsible for payment of transfer cost when acquiring an immovable property, but it should further be established if the transaction is subject to the payment of VAT or transfer duty to SARS. When an immovable property is transferred, either VAT or transfer duty is payable. To determine whether VAT or transfer duty is payable one should look […]