South Africa Case Law

Citibank, N.A. South African Branch and Another v Commissioner for the South African Revenue Service (2022/043103)

Citibank, N.A. South African Branch and Another v Commissioner for the South African Revenue Service (2022/043103) [2023] ZAGPPHC 1209; 2024 (1) SA 429 (GP); 87 SATC 321 (20 September 2023)

Court

North Gauteng High Court, Pretoria

Case number

2022/043103

Judge

Mooki

The High Court dismissed a VAT declaratory application about seconded employees, holding the applicants failed to show they were the employees’ employers for tax purposes.

• Value Added Tax Act
• Imported Services
• Employment Relationship For Tax
• Declaratory Relief
• Remuneration Definition
• Value-added-tax

Taxpayer ZAW v Commissioner for the South African Revenue Service (VAT 1922)

Taxpayer ZAW v Commissioner for the South African Revenue Service (VAT 1922) [2023] ZATC 4; 86 SATC 250 (14 March 2023)

Court

Tax Court

Case number

VAT 1922

Judges

E S Grobbelaar, T Pasiwe, E Gouws

The court found that Taxpayer ZAW is an active investment holding company whose enterprise encompasses capital management and the provision of financial and management services to its subsidiaries for remuneration. The acquisition of Des and the related rights issue were not isolated incidents but formed part of Taxpayer ZAW's regular business activities. The services acquired for the rights issue and acquisition had a functional link to the enterprise, as they enabled Taxpayer ZAW to expand its business, provide additional management services, and earn further income. The expenses incurred w…

Source excerpt

• Input Tax Deduction
• Imported Services
• Understatement Penalty
• Enterprise Definition
• Rights Issue
• Zero Rating

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

ABC (Pty) Ltd v Commissioner for the South African Revenue Service (VAT 1610)

ABC (Pty) Ltd v Commissioner for the South African Revenue Service (VAT 1610) [2019] ZATC 18 (19 June 2019)

Court

Tax Court

Case number

VAT 1610

Judge

Louw

The court found that the services acquired from local service providers were not sufficiently linked to the making of taxable supplies, but rather related to the refinancing of debt, which is an exempt financial service under the VAT Act. The connection between the services and the taxable supplies was too remote to justify input tax deduction. Similarly, services from foreign providers were not acquired for the purpose of making taxable supplies and thus constituted imported services subject to output VAT. The penalty imposed by SARS was remitted as there was no evidence of intent to avoid o…

Source excerpt

• Input Tax Deduction
• Imported Services
• Vat Penalties
• Financial Services Exemption

Commissioner for South African Revenue Services v De Beers Consolidated Mines Ltd (503/11)

Commissioner for South African Revenue Services v De Beers Consolidated Mines Ltd (503/11) [2012] ZASCA 103; 2012 (5) SA 344 (SCA); [2012] 3 All SA 367 (SCA); 74 SATC 330 (1 June 2012)

Court

Supreme Court of Appeal

Case number

503/11

Judges

Navsa, Van Heerden, Leach, McLaren, Southwood

The Supreme Court of Appeal held that the services rendered by NM Rothschild & Sons Ltd to De Beers Consolidated Mines Ltd were not acquired for the purpose of making taxable supplies in the course or furtherance of De Beers' enterprise of mining and selling diamonds. Instead, these services were obtained to comply with statutory obligations in the context of a takeover transaction, which was too remote from the advancement of the VAT enterprise. The court found that the services were consumed in South Africa and thus constituted 'imported services' under the Value-Added Tax Act, attracting V…

Source excerpt

• Value Added Tax Act
• Imported Services
• Input Tax Deduction
• Enterprise Definition
• Taxable Supplies
• Scheme Of Arrangement

Metropolitan Life Limited v Commissioner for the South African Revenue Services (A 232/2007)

Metropolitan Life Limited v Commissioner for the South African Revenue Services (A 232/2007) [2008] ZAWCHC 105; 2009 (3) SA 484 (C); [2008] 4 All SA 558 (C); 70 SATC 162 (16 May 2008)

Court

Western Cape High Court, Cape Town

Case number

A 232/2007

Judges

Davis, Zondi, Schippers

The court held that imported services were taxable under section 7(1)(c) and did not qualify for zero rating under section 11(2)(k).

• Value Added Tax
• Imported Services
• Zero Rating
• Statutory Interpretation
• Value-added-tax
• Imported-services