VAT AND COMMON LAW THEFT

A recent decision has created some interest in whether the taxpayers failing to pay over the correct amounts of VAT can be charged – in addition to other statutory crimes prescribed by the VAT Act, 89 of 1991 – with the common law crime of theft.In Director of Public Prosecutions, Western Cape v Parker[1] the […]

EXPLAINING ZERO RATED 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 […]

WHEN TO REGISTER FOR VAT VOLUNTARILY

Taxpayers may register for Value-Added Tax (‘VAT’) on either a voluntary or compulsory basis.  This article considers the commercial benefits linked to an enterprise registering for VAT on a voluntary basis only. Taxpayers who are registered for VAT are required to charge VAT on supplies (that is on sale of goods or the rendering of […]

The validity of Tax invoices: It is your responsibility

The audits of Value-Added Tax (VAT) returns by the South African Revenue Service (SARS), have increased the focus on the validity of tax invoices for the purposes of VAT. A VAT vendor submitting VAT returns is responsible for ensuring that all invoices included in the returns comply with the relevant legislation. If valid tax invoices […]