25. SARS VAT Vendors Guide.pdf

Package in rsa the vat is calculated and paid based

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package in RSA, the VAT is calculated and paid, based on the consideration attributable to the individual component supplies for example – international travel is subject to VAT at the zero rate; tour guide services are subject to VAT at the standard rate; hotel accommodation is subject to VAT at the standard rate; and airport shuttle passenger transport is exempt from VAT. See Interpretation Note 42 “The supply of goods and services by the travel and tourism industry” for more information. 5.3.8 Betting transactions A vendor that accepts a bet from any person (the punter) on the outcome of a race or on any other event is deemed to make a supply of betting services to the punter. The consideration for the betting services is the total amount received in respect of the bet. Output tax is calculated by applying the tax fraction (14/114) to the gross amount of the bet received. For more information see Interpretation Note 84 “The Value-Added Tax Treatment of Bets”. 38
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VAT 404 – Guide for Vendors Chapter 6 Chapter 6 Taxable supplies 6.1 Introduction The term “supply” is widely defined in the VAT Act to include performance under any sale, rental agreement and ICA. It also includes all other forms of supply, whether voluntary, compulsory or by operation of law, irrespective of where the supply is effected, and includes any derivative of the term . The term “taxable supplies” includes all supplies made by a vendor in the course or furtherance of an enterprise on which VAT should be levied at the standard rate or the zero rate. 55 As exempt supplies are not taxable supplies, no output tax is levied and no input tax may be deducted on any expenses attributable to making those supplies. This chapter only addresses the VAT implications of taxable supplies. Exempt supplies are dealt with in Chapter 7 . 6.2 Standard-rated supplies A standard-rated supply is a supply of goods or services by a vendor which is subject to VAT at the standard rate of 14%. As explained in Chapter 1 , as a general rule, the supply of all goods and services are taxable at the standard rate, unless it is specifically zero-rated under section 11 (see 6.3) , or exempt under section 12 (see Chapter 7 ). The following are some examples of standard-rated supplies (the list is not exhaustive): Land and buildings (fixed property) – commercial or residential property bought from property developers, building materials, vacant land bought from a vendor etc. Professional services – construction/building, estate agents, consultants, architects, engineers, project managers, doctors, private hospital services, lawyers, plumbers, electricians and accountants. Household consumables and durable goods – most grocery items and foodstuffs such as meat, fish, white bread, snacks, most canned foods, cigarettes, perfume, medicines, cool drinks, cleaning materials, clothing, footwear, microwave ovens and other household consumables and appliances.
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