Tuup v Commissioner for the South African Revenue Service (VAT 22402)
Tuup v Commissioner for the South African Revenue Service (VAT 22402) [2024] ZATC 1; 87 SATC 265 (17 January 2024)
The Court held that the appellant failed to properly plead an attack on the 12.5% cap imposed by SARS under the class ruling. Even if the attack had been properly pleaded, the cap is lawful, having been based on a detailed industry investigation and agreement with HESA, and serving to prevent distorted outcomes in VAT apportionment. The Head Lease and Sub-Lease are not separate taxable supplies but form a single composite arrangement for the provision of student accommodation, an exempt supply under the VAT Act. The expenditure under the Head Lease was not incurred for making taxable supplies…
Source excerpt
- Vat Apportionment
- Input Tax Deduction
- Vat Class Ruling
- Exempt Supplies
- Administrative Review