The issue at hand was whether Rennies could zero-rate supplementary commission earned for targets reached on the sale of international airline tickets. The Supreme Court of Appeal stated that the supplementary commission was earned for the same services rendered at the standard commission, and therefore should also be at a zero rate.
SARS appealed a Tax Court decision directly to the Supreme Court of Appeal. The tax court held that Capitec was entitled to deduct VAT amounting to +/-R71 million by virtue of section 16(3)(c) of the VAT Act, however the Supreme Court of Appeal overturned this decision stating that the loan cover was supplied in the course of making exempt supplies. The input VAT was therefore denied.
SARS has published issue 14 of the VAT 404 Guide for Vendors
The 2022 Trust Filing Season commenced on 1 July 2022 and ends on 23 November 2022 for trusts not registered for provisional tax, and 23 January 2023 for trusts registered for provisional tax
The latest Tax Practitioner newsletter (issue 33) has been published and deals with a few topics including the SARS tax practitioner readiness programme, the opening of individual filing season and auto assessments.
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