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)
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