VAT: The Difference Between Standard-Rated, Zero-Rated, and Exempt Supplies

Value-added tax (VAT) is one of South Africa’s most significant indirect taxes, affecting businesses and consumers alike. However, while most people know that the standard VAT rate is 15%, fewer understand that not all goods and services are treated the same for VAT purposes. The Value-Added Tax Act 89 of 1991 (as amended) divides supplies […]

A&P services and zero-rated supplies

On 3 April 2020, the Supreme Court of Appeal delivered a judgement against Diageo South Africa (Pty) Ltd (“Diageo SA”) in a value-added tax (“VAT”) matter relating to the supply of advertising and promotion (“A&P”) services to various non-South African brand owners in the group. Diageo SA entered into an agreement with the foreign brand […]