Ken CC v Commissioner for the South African Revenue Service (VAT 22184)
Ken CC v Commissioner for the South African Revenue Service (VAT 22184) [2023] ZATC 15; 86 SATC 511 (8 December 2023)
The court found that Ken CC acted as an agent for foreign tour operators, providing package assembly and arranging services, not as a principal supplying tourism services. Ken CC did not own or control the tourism services, did not alter their nature or value, and only declared its commission as income for VAT purposes. The evidence, including contracts, invoices, and industry practice, demonstrated that Ken CC's role was limited to arranging and booking services on behalf of FTOs, with no direct supply to foreign tourists. SARS's reliance on the XO Africa case was misplaced, as the facts wer…
Source excerpt
- Value Added Tax
- Agency Vs Principal
- Zero Rating
- Late Payment Interest
- Late Payment Penalty
- Tax Administration Act