Commissioner for the South African Revenue Service v Respublica (Pty) Ltd (1025/2017)
Commissioner for the South African Revenue Service v Respublica (Pty) Ltd (1025/2017) [2018] ZASCA 109; 81 SATC 175 (12 September 2018)
The court held that the supply by Respublica to TUT was governed by a lease agreement between two juristic persons, and did not constitute the supply of 'commercial accommodation' as defined in the VAT Act. The contractual relationship was a lease of immovable property, with ancillary services, and not the provision of lodging to natural persons. The fact that TUT subsequently provided accommodation to students under separate agreements was irrelevant to the VAT consequences of the supply between Respublica and TUT. Therefore, section 10(10) of the VAT Act did not apply, and Respublica was re…
Source excerpt
- Value Added Tax Act
- Commercial Accommodation Definition
- Contractual Characterisation
- Taxable Supply
- Vat Exemption