Value Added Tax

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Value Added Tax by Mind Map: Value Added Tax

1. Specific VAT Transactions

1.1. Insurance - deemed supply s8(8)

1.1.1. Insured

1.1.1.1. Output Tax

1.1.1.1.1. Supply received due to a loss incurred, in the ordinary course of carrying on an enterprise. Timing of which is when payment received or when 3rd party suffers loss. Valued at consideration x 15/115

1.1.1.2. Input Tax

1.1.1.2.1. Claim on premiums paid (as output charged by insurer)

1.1.2. Insurer

1.1.2.1. Output Tax

1.1.2.1.1. Premiums charged

1.1.2.2. Input Tax

1.1.2.2.1. Payments to the insured

2. Taxable Supplies

2.1. Standard rated items

2.2. Zero-rated items (s11)

2.2.1. Export of goods and services

2.2.2. Supply of a going concern

2.2.3. international travel by passengers and goods

2.2.4. Fuel

2.2.5. Basic foods (Part B 2nd Schedule)

2.2.6. Gold coins issued by SARB

2.2.7. Vocational training of employees

2.2.8. Municipal rates and taxes

2.2.8.1. Assumed to be standard rated if

2.2.8.1.1. a flat rate is charged to the owner for rates and other goods and services

2.2.8.1.2. Or rates or charged to the tenant

3. Non-taxable Supplies

3.1. Exempt Supplies [s12]

3.1.1. Financial Services

3.1.1.1. Excludes Bank Charges as fees relating to financial services are standard rated

3.1.2. Residential Accommodation

3.1.3. Transport of fare-paying passengers (road and rail)

3.1.4. Educational services

3.1.5. Employee Organisations

3.1.6. Supply of childcare by a creche or after-school care centre

4. Output Tax

4.1. Section 7(1)(a)

4.1.1. Supply

4.1.1.1. Sales

4.1.1.2. Rental Agreement

4.1.1.3. Installment Credit Agreement

4.1.1.4. Transfer of Ownership

4.1.1.5. Deemed Supplies

4.1.1.5.1. s8

4.1.1.5.2. s18(3)

4.1.1.6. Zero-rated supply

4.1.1.7. Exempt supply

4.1.2. Vendor

4.1.2.1. Compulsory registration

4.1.2.1.1. Conducts an enterprise and reason to believe taxable supplies will be or exceed R1m p.a

4.1.2.1.2. Foreign person supplies electronic services to an SA customer and taxable supplies exceed R50k p.a

4.1.2.1.3. Contractual obligations in next 12 months exceed R1m

4.1.2.1.4. Uses invoice basis

4.1.2.2. Voluntary registration

4.1.2.2.1. Conducts an enterprise and expects taxable supplies to be greater than or equal to R50k p.a

4.1.2.2.2. Uses payment basis until the month where in the previous month taxable supplies exceed R50k, then use invoice basis

4.1.3. Goods and Services

4.1.4. Enterprise

4.1.4.1. Must meet all 4 requirements

4.1.4.1.1. Continuous or regular activity

4.1.4.1.2. in or partly in SA

4.1.4.1.3. Does not have to make a profit

4.1.4.1.4. Goods and services supplied for consideration

4.1.4.2. Supply by foreign person of electronic services to SA Customers specifically included as an enterprise

4.1.4.3. Excludes and therefore no output charged

4.1.4.3.1. Employment

4.1.4.3.2. Hobbies

4.1.4.3.3. VAT Exempt activities

4.1.4.3.4. Overseas branches

4.1.4.3.5. Commercial accomodation

4.1.5. Taxable

4.1.5.1. See taxable and non-taxable supplies

4.2. Time of Supply [section 9(1)]

4.2.1. Earlier of invoice or receipt of payment

4.3. Value of Supply [section 10(2) and 10(3)]

4.3.1. Value of consideration received for supply