General:
VAT is taxed on consumption
Indirect tax meaning that it is not assessed directly by SARS unlike income
tax
1 April 2018 – 15%
Claim input Tax and you levy output tax
Terminology:
VAT Vendor: registered for VAT and levies VAT on selling price on goods
Enterprise: business activities carried on by VAT vendor
Supplier: VAT vendor sells goods to another person
Output tax: VAT that supplier levies on selling price
Recipient: VAT vendor buys goods from another person and can claim
input tax
Input tax: any VAT paid that recipient may claim back
Accounting Basis:
Invoice basis: on the earlier of issue of invoice and when payment is
received.
Payment basis: accounted for when payments are made or received. Must
apply with commissioner to use this basis.
Tax periods:
Category 2 months Jan, March, Vendors with taxable sup <= R30mil in
A May .. 12 months
Category 2 months Feb, April … Farmers with taxable sup > R1.5mil in
B 12 months
Category 1 month Jan, Feb, April Vendors with taxable sup >R30mil in 12
C … months
Category 6 months Feb & August Farmers with taxable sup <R1.5mil in
D 12 months
Category 12 months Feb Entities that solely receive rental and
E management fees from connected
persons
Calculation:
output VAT – input VAT
Output Tax:
2 types of supplies:
1. Taxable supplies which consist of Output Tax is only
a. Standard rate (15%) apportioned on % taxable
b. Zero rated (0%) supplies if:
2. Exempt supplies (no VAT applicable)
- Fringe benefits
Levied in 3 situations: - Indemnity payments
- Supply of Goods or services
, - Importation of goods into South Africa
- Supply of imported services
Standard Rated supplies
1. Supply of Goods or Services: s7(1)(a)
Must be able to meet the definitions:
Definition ‘Goods’:
Movable goods, fixed property, any real right, electricity, Krugerrands
(since they are made from gold and not money but are zero rated)
Excluded:
o Money
o certain rights (mortgage bond)
o stamp or card which has monetary value
Definition ‘Services’:
Anything done/ to be done
Excluded:
o goods
o money
o stamp or card which has monetary value
Definition ‘Enterprise’:
Any enterprise or activity carried on continuously OR regularly in SA OR
partly in SA and goods& services are supplied for a consideration whether
profit or not.
Excluded:
o Salary or any remuneration received from employer
o Hobby of Natural Person
o Exempt supply
o Supply of commercial accommodation < R120 000 taxable supp
o Supplies are made in branches/ businesses outside RSA
Branch/ main business can be separately identified
Independent accounting system is maintained
Consideration (or open MV if not $ but rather in the form of G&S) = value
+ VAT
2.Importation of Goods into RSA: s7(1)(b) &s13
Not Output Tax, but importer still has to pay for VAT even if they are not a
vendor. This is to make it fair to local suppliers that do supply the goods, but
citizens choose to import them rather.
Custom union member countries:
Namibia, Botswana, Lesotho, Swaziland
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, creditcard of Stuvia-tegoed voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper mandylee14. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €2,69. Je zit daarna nergens aan vast.