RWANDA REVENUE AUTHORITY (RRA) v SOCIÉTÉ RWANDAISE DE DISTRIBUTION ET SERVICES LTD (SRDS LTD)
Transport services provided by SRDS Ltd in the course of distributing BRALIRWA’s products are accessory to the principal activity of distribution, which is not VAT exempt. Therefore, such transport services are not VAT exempt, regardless of licensing. Only transport services provided as a principal activity are VAT exempt under the law. The Court of Appeal’s contrary interpretation is overruled.
Source excerpt
- Value added tax (vat)
- Vat exemption
- Accessory vs principal activity
- Distribution agreements
- Transport services
- Judicial precedent