South Africa Case Law

Commissioner for the South African Revenue Service v Capitec Bank Limited (94/2021)

Commissioner for the South African Revenue Service v Capitec Bank Limited (94/2021) [2022] ZASCA 97; [2022] 3 All SA 641 (SCA); 2022 (6) SA 76 (SCA); 85 SATC 311 (21 June 2022)

Court

Supreme Court of Appeal

Case number

94/2021

Judges

Saldulker, Mocumie, Makgoka, Schippers, Musi

The Supreme Court of Appeal held that Capitec Bank Limited did not charge its customers any consideration for the loan cover supplied under its unsecured lending contracts. The loan cover was provided free of charge, as evidenced by the loan agreements and Capitec's annual report. The supply of credit is an exempt financial service under the VAT Act, and the loan cover was supplied in the course of providing credit, not as a separate taxable supply. The fees charged by Capitec (initiation and service fees) were regulated under the National Credit Act and did not include charges for insurance…

Source excerpt

• Value Added Tax
• Input Tax Deduction
• Exempt Supply
• Financial Services
• Credit Insurance
• Tax Penalty Remission

Consol Glass (Pty) Ltd v Commissioner for the South African Revenue Service (1010/2019)

Consol Glass (Pty) Ltd v Commissioner for the South African Revenue Service (1010/2019) [2020] ZASCA 175; 83 SATC 186 (18 December 2020)

Court

Supreme Court of Appeal

Case number

1010/2019

Judges

NAVSA, WALLIS, MAKGOKA, SUTHERLAND, UNTERHALTER

The SCA held that Consol Glass could not claim input tax on refinancing-related local services and had to account for VAT on imported services.

• Value Added Tax Act
• Input Tax Deduction
• Imported Services
• Taxable Supply Definition
• Exempt Supply
• Financial Services