VAT 404 Guide for Vendors (Issue 14)

The 14^th Issue of the VAT 404 Guide for Vendors was issued on 29 June 2022. The VAT 404 is a basic guide which does not deal with all the legal detail associated with VAT and is not intended for legal reference. The information in the guide is based on the Value Added Tax Act 89 of 1991 and the Tax Administration Act 28 of 2011.

Some of the important amendments that have been introduced since the previous issue of this guide cover the following topics:

Amendments that came into effect from 1 April 2020:

• Decisions to overcome difficulties, anomalies, or incongruities
• Foreign Donor Funded Projects (FDFPs)
• Transfer of ownership of reinsurance policies
• Refining the VAT corporate reorganisation rules
• Zero-rating of sanitary towels (pads)
• Deregistration of certain foreign electronic services suppliers
• Tax invoices issued by foreign suppliers of electronic services

Amendments that came into effect from 1 April 2021:

• Cross border leases of foreign-owned ships, aircraft and rolling stock
• Refining the VAT corporate reorganisation rules
• Zero-rating of telecommunication services
• Accounting basis for an intermediary
• Irrecoverable debts
• Management of superannuation schemes
• Imported services
• Second-hand goods
• Special shops for diplomats

Amendments that came into effect from 1 April 2022:

• Life insurance/financial services
• Temporary letting of dwellings by developers
• International telecommunications services
• Zero-rated foodstuffs
• Estimated assessments

The guide covers the following topics in detail:

• Registering for VAT
• Tax periods
• Accounting basis
• Time and value of supply
• Taxable supplies
• Exempt supplies and miscellaneous supplies
• Input tax and other deductions
• Adjustments
• Calculation of VAT and submission of returns
• Penalties and interest
• Exports and imports
• Tax invoices, debit and credit notes
• Assessments, objections and appeals
• Rulings
• Tax Administration Act

Find a copy of the guide here.

08/07/2022