VAT Increase and Accounting Systems

Posted on 26 of March, 2018 by in VAT

As you are aware, the National Treasury announced an increase in Value Added Tax (VAT) from 14% to 15% effective 1 April 2018. We urge you to ensure that your accounting systems are set up to process transactions at the new VAT rate of 15% from 1 April 2018. This is to avoid any penalties […]

Apportionment of VAT input claims

Posted on 20 of March, 2017 by in VAT

Generally speaking, the VAT portion of expenditure incurred by a VAT vendor in carrying on its enterprise may be claimed back from SARS when the VAT vendor submits is VAT returns on a periodical basis. Typically, these input tax claims are set off against the output tax liability that the VAT vendor may have. However, […]

Explaining zero rated VAT

Posted on 9 of January, 2017 by in VAT

Value-Added Tax, or VAT, is currently typically charged at 14% on all taxable supplies of goods or services rendered by registered VAT vendors. Taxable supplies exclude exempt supplies, such as providing financial services, residential accommodation or educational services (see section 12 of the Value-Added Tax Act, 89 of 1991). Where a VAT vendor makes exempt […]

Assets held as security by SARS when a company is being liquidated

Posted on 5 of January, 2017 by in VAT

The KwaZulu-Natal High Court previously granted an application brought by Van der Merwe and others (acting as liquidators) requiring the Commissioner for the South African Revenue Service to release certain assets held by him under his control in a customs warehouse. The assets in question were being held by the Commissioner as security for payment […]

SAID BTW-ondersoeke en oudits

Posted on 27 of October, 2015 by in VAT

Dit is deesdae ‘n algemene verskynsel vir ondernemers om ‘n kennisgewing vir ‘n BTW-ondersoek vanaf die SAID te ontvang, wat die ondernemer versoek om binne 21 dae ondersteunende dokumentasie ten opsigte van ‘n spesifieke BTW201 opgawe te voorsien. Indien die ondernemer versuim om hierdie dokumentasie in te dien, kan die SAID ‘n addisionele aanslag uitreik […]

Vat: The difference between standard-rated, zero-rated and exempt supplies

Posted on 18 of September, 2015 by in VAT

There are three categories of supplies that can be made by a VAT vendor: standard-rated, zero-rated and exempt supplies. Output tax must be levied on all supplies except exempt supplies. The VAT Act gives specific guidelines for zero-rated and exempt supplies but these fall outside the scope of this article. Please contact your tax practitioner […]