Master Currency (Pty) Ltd v Commissioner for South African Revenue Services (155/2012) [2013] ZASCA 17; [2013] 3 All SA 135 (SCA); 2014 (6) SA 66 (SCA); 75 SATC 113 (20 March 2013)

Master Currency (Pty) Ltd v Commissioner for South African Revenue Services (155/2012) [2013] ZASCA 17; [2013] 3 All SA 135 (SCA); 2014 (6) SA 66 (SCA); 75 SATC 113 (20 March 2013)

The Supreme Court of Appeal held that the Value-Added Tax Act 89 of 1991 applies to the entire territory of the Republic, including duty free areas at international airports. The appellant failed to bring its services within any exemption, exception, deduction, or adjustment under the Act. Section 11(2)(l) provides for zero rating of services supplied to non-residents, but specifically excludes services supplied to persons present in the Republic at the time the services are rendered. The appellant's services were rendered to non-residents who were physically present in the Republic at the time of the transaction, and thus do not qualify for zero rating. The court rejected arguments based...

Citation
[2013] ZASCA 17
Parties
Appellant: Master Currency (Pty) Limited; Respondent: Commissioner for the South African Revenue Services
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
20 March 2013
Case Number
155/2012
Procedural Posture
Civil Appeal / Appeal From the Tax Court, Johannesburg
Outcome
Appeal dismissed with costs.
Judges
Malan, Leach, Southwood, Schoeman, Van der Merwe
Legal Topics
Value Added Tax, Zero Rating, Duty Free Areas, Interpretation of Statutes
Tax Law Value Added Tax Zero Rating Duty Free Areas Interpretation of Statutes

Case Brief

Summary, issues, holding and outcome

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Parties

Master Currency (Pty) Limited

Appellant

Commissioner for the South African Revenue Services

Respondent

Procedural Posture

Civil Appeal / Appeal From the Tax Court, Johannesburg

Legal Issues

  1. 1 Whether services rendered by the appellant in the duty free area of Johannesburg International Airport should be zero rated for VAT purposes under section 11(2)(l) of the Value-Added Tax Act 89 of 1991.
  2. 2 Whether the Act applies to duty free areas at international airports.
  3. 3 Whether the appellant's services qualify for any exemption, exception, deduction, or adjustment under the Act.

Ratio Decidendi

The Supreme Court of Appeal held that the Value-Added Tax Act 89 of 1991 applies to the entire territory of the Republic, including duty free areas at international airports. The appellant failed to bring its services within any exemption, exception, deduction, or adjustment under the Act. Section 11(2)(l) provides for zero rating of services supplied to non-residents, but specifically excludes services supplied to persons present in the Republic at the time the services are rendered. The appellant's services were rendered to non-residents who were physically present in the Republic at the time of the transaction, and thus do not qualify for zero rating. The court rejected arguments based...

Court Disposition

Appeal dismissed with costs.

Orders

  • The appeal is dismissed with costs.