2025 VAT Refresher
Presenters : Christo Theron
Overview
A common trend in our courts recently is to embrace the principle that the purpose and structure of legislation must be considered when interpreting legislation. A good example of this is the recent judgement of Capitec Bank.
VAT has been with us since 1991. In the frame of reference of many taxpayers, VAT is still considered a simple tax that looks after itself. We sometimes get the impression that taxpayers do not appreciate the importance of VAT as part of the overall business cycles in an organisation.
This video examines the VAT Act and related bodies of law by re-visiting the basics of VAT. The broad network of the VAT Act is then linked to the challenges experienced in practice.
The purpose of the video is to cement the fundamentals of VAT, see how changes have impacted on our historic view of VAT and to gain a new appreciation of VAT as a critical function in all registration.
Video Content
1. Introduction
2. The framework of the VAT Act
3. Output tax
- What is output tax?
- Section 7(1) of the VAT Act
- Meaning of a VAT enterprise
- Meaning of goods
- Meaning of services
- Standard-rated supplies
- Zero-rated supplies
- Exempt supplies
- Deemed supplies
- Section 7(1) of the VAT Act
4. Registration
- Compulsory
- Voluntary
- International groups of companies
5. Zero-rated exports of goods
- Direct exports of goods
- Indirect exports of goods
- Export of services
6. Input tax
- Classes of input tax
- Non-deductible input tax
- Documentation
7. Apportionment
Competencies Developed
On completion of the video you will:
- Have gained an understanding of the importance of the VAT Act as a systems and how it interacts with other systems and processes.
- Understand the nature and ambit of taxable supplies.
- Understand when the standard rate of VAT may be deviated from in favour of zero-rated or exempt supplies.
- Understand how the concept of input tax fits into the structure of the VAT Act.
- Understand and apply the principles governing the categories of non-deductible input tax
- Understand the basics of apportionment.