South Africa VAT budget

Sun 6th Mar 2016

The latest South African budget refrained from raising the standard VAT rate from the current 14% to help deal with the fast growing state deficit. But it did include a number of VAT changes, including:

  • A review of the VAT treatment of vouchers, gifts or discounts granted by loyalty schemes
  • A review output VAT relief where receivables from connected parties are forgiven
  • The option for the South African tax office to accept alternatives evidence for input VAT deductions beyond purchase invoices
  • The right to deduct input VAT incurred on part-gold goods is to be reinstated for VAT registered businesses