South Africa Case Law

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)

Court

Tax Court

Case number

VAT 22184

Judges

Dickerson, Sunel Louw, Yolisa Molefe

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…

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• Value Added Tax
• Agency Vs Principal
• Zero Rating
• Late Payment Interest
• Late Payment Penalty
• Tax Administration Act

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…

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

Rennies Travel (Pty) Ltd v SARS (207/2021)

Rennies Travel (Pty) Ltd v SARS (207/2021) [2022] ZASCA 83; 2022 (6) SA 349 (SCA); 85 SATC 163 (6 June 2022)

Court

Supreme Court of Appeal

Case number

207/2021

Judges

Van der Merwe, Plasket, Hughes, Tsoka, Musi

Supplementary airline-ticket commission was held to be zero-rated VAT as consideration for arranging international passenger transport, and the appeal notice was timeous.

• Value Added Tax
• Zero Rating
• Tax Assessment
• Tax Administration Act
• Appeal Lodgement Period
• Value-added-tax

Lueven Metals (Pty) Ltd v Commissioner for the South African Revenue Service (31356/2021)

Lueven Metals (Pty) Ltd v Commissioner for the South African Revenue Service (31356/2021) [2022] ZAGPPHC 325; 84 SATC 447 (19 May 2022)

Court

North Gauteng High Court, Pretoria

Case number

31356/2021

Judge

N Davis

The High Court held that re-refined gold previously manufactured into jewellery or coins does not qualify for VAT zero-rating under section 11(1)(f).

• Value Added Tax
• Zero Rating
• Statutory Interpretation
• Manufacturing Processes
• Declaratory Relief
• Value-added-tax

Wenco International Mining Systems Ltd and Another v Commissioner for the South African Revenue Service (59922/2019)

Wenco International Mining Systems Ltd and Another v Commissioner for the South African Revenue Service (59922/2019) [2021] ZAGPPHC 70; 83 SATC 463 (19 January 2021)

Court

North Gauteng High Court, Pretoria

Case number

59922/2019

Judge

D S Fourie

The High Court dismissed a VAT review, holding that the South African branch did not conduct a separate enterprise and could not be separately registered for VAT.

• Vat Registration
• Definition Of Enterprise
• Promotion Of Administrative Justice Act
• Zero Rating
• Branch Vs Main Business
• Statutory Interpretation

Rennies Travel (Pty) Ltd v The Commissioner for the South African Revenue Services (VAT/1715)

Rennies Travel (Pty) Ltd v The Commissioner for the South African Revenue Services (VAT/1715) [2020] ZATC 23 (11 December 2020)

Court

Tax Court

Case number

VAT/1715

Judges

Twala, Xaba, Nhleko

The Tax Court held that airline incentive commissions paid to a travel agent for meeting sales targets were taxable at the standard VAT rate, not zero-rated.

• Value Added Tax
• Zero Rating
• Interpretation Of Contracts
• Supply Of Services
• Marketing And Promotion
• Additional Tax Assessment

Diageo South Africa (Pty) Ltd v Commissioner for the South African Revenue Service (330/2019)

Diageo South Africa (Pty) Ltd v Commissioner for the South African Revenue Service (330/2019) [2020] ZASCA 34; 82 SATC 351 (3 April 2020)

Court

Supreme Court of Appeal

Case number

330/2019

Judges

Petse, Swain, Mbha, Makgoka, Mbatha

The Supreme Court of Appeal held that section 8(15) of the Value Added Tax Act 89 of 1991 is a deeming provision that applies to a single supply comprising both goods and services, where, if charged separately, different VAT rates would apply. Diageo's supply to non-resident brand owners included both advertising and promotional services and goods (such as branded giveaways and samples) consumed in South Africa. Although invoiced as a single fee, the goods portion was not exported and was consumed locally. The jurisdictional requirements of section 8(15) were satisfied: there was a single sup…

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• Value Added Tax
• Deeming Provision
• Zero Rating
• Standard Rating
• Single Supply
• Interpretation Of Statutes

Taxpayer v Commissioner for the South African Revenue Service (VAT1558)

Taxpayer v Commissioner for the South African Revenue Service (VAT1558) [2018] ZATC 3; 81 SATC 390 (5 December 2018)

Court

Tax Court

Case number

VAT 1558

Judge

K M Savage

The Tax Court held that section 8(15) of the VAT Act applied to promotional goods supplied as part of a single A&P service, confirming the additional VAT assessments.

• Value Added Tax
• Zero Rating
• Deeming Provision
• Supply Of Goods And Services
• Apportionment
• Interpretation Of Vat Act

ABC (Pty) Ltd v Commissioner For The South African Revenue Service (VAT 1558)

ABC (Pty) Ltd v Commissioner For The South African Revenue Service (VAT 1558) [2018] ZATC 7 (5 December 2018)

Court

Tax Court

Case number

VAT 1558

Judge

K M Savage

Tax Court held that promotional goods distributed as part of an advertising service could be separated under VAT s 8(15) and taxed at the standard rate.

• Value Added Tax
• Zero Rating
• Composite Supply
• Deeming Provision
• Supply Of Goods
• Supply Of Services

CSARS v Marshall NO and Others (816/2015)

CSARS v Marshall NO and Others (816/2015) [2016] ZASCA 158; 2017 (1) SA 114 (SCA); 79 SATC 49 (3 October 2016)

Court

Supreme Court of Appeal

Case number

816/2015

Judges

Navsa, Bosielo, Dambuza, Van der Merwe, Makgoka

The SCA held that VAT zero-rating under section 11(2)(n) does not apply to contractual payments for actual aero-medical services rendered to provincial health departments.

• Value Added Tax
• Zero Rating
• Public Benefit Organisation
• Deemed Supply
• Statutory Interpretation
• Value-added-tax