You cannot escape VAT when touring

On 25 May 2021, the Supreme Court of Appeal (SCA) upheld an appeal by the Commissioner for the South African Revenue Services (“SARS”) against Tourvest Financial Services (Pty) Ltd (“Tourvest”), a licensed dealer in foreign exchange, concerning its value-added tax (“VAT”) liability. The judgement sets very clear guidelines on when apportionment for VAT inputs must be made, where vendors produce both taxable and exempt supplies. […]

Interest on delayed VAT refunds: The “materiality” question

Section 45 of the Value-Added Tax Act makes provision for the payment of interest on delayed VAT refunds. In terms of section 45(1) of the Act, the South African Revenue Service (“SARS”) must, within 21 business days after the date on which the vendor’s return in respect of a tax period is received, refund the vendor. This is provided that […]

THE INTERPRETATIVE VALUE OF SARS INTERPRETATION NOTES

In terms of section 4 of the South African Revenue Service (SARS) Act,[1] one of the objectives of SARS is to secure the efficient, effective and widest possible enforcement of tax and related acts. One of the methods employed by SARS in this mandate is through the publication of official documents on the application, or […]