Mandatory VAT apportionment reporting to SARS
Presenters : Christo Theron
Overview
This video provides a practical unpacking of VAT Binding General Ruling 16 (Issue 3), which introduces a significant shift from the previous turnover-based apportionment method. The updated BGR resolves many long-standing areas of confusion and uncertainty in practice and includes important guidance on the apportionment of VAT in financial institutions—an area known for its complexity.
To cater to members both inside and outside the financial services sector, the video is divided into two sessions. Participants who do not work with financial-sector VAT complexities may opt to watch only Session 1. This video aims to strengthen your understanding and practical application of apportionment rules to support accurate VAT compliance in this specialized area.
Video Content
- The body of law
- Principles of attribution
- General apportionment rules
- Specific exclusions
- Specific categories of adjustments (non-financial services related)
- Interest received
- Trading in financial assets
- Profit shares from joint ventures
Competencies Developed
- Understand the legislative framework in the VAT Act governing the apportionment of input tax.
- Apply the apportionment framework correctly in practice.
- Perform the annual apportionment percentage calculation accurately.
- Compute and declare the annual apportionment adjustment correctly in the VAT return.
- Meet SARS’ annual disclosure requirements.
- Apply the transitional rules with accuracy.