All vendors that are required to apportion input VAT must recalculate (within 6 months of the financial year-end) the apportionment ratio applied in the previous financial year using the audited financial statement of that year. Following the VAT rate increase on 1 April 2018, performing your annual apportionment adjustment has just become significantly more complex.
Please find below the alert that deals with the above mentioned matter.
All vendors that are required to apportion input VAT must recalculate the apportionment ratio applied in the previous financial year using the audited financial statement of that year. Following the VAT rate increase on 1 April 2018, performing your annual apportionment adjustment has just become significantly more complex.
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In a document published on 23 August, the Tax Ombud listed a number of specific systemic issues identified at SARS. As stated in the document, these systemic issues were identified based on the Tax Ombud’s report into alleged delayed payment of refunds as a systemic and emerging issue, as well as complaints received by his office from taxpayers.
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The draft Taxation Laws Amendment Bill, 2018 (“the draft TLAB”) and the draft Tax Administration Laws Amendment Bill (“the draft TALAB”) were released for public comment on 16 July 2018 and include proposed amendments to the Value-Added Tax Act, 1991 (“the VAT Act”).
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The proposed amendments seek to address many of the concerns relating to the rules introduced in the 2017 legislative cycle. Importantly, it is proposed that the amendments be effective retrospectively for tax years commencing on or after 1 January 2018 (i.e. the effective date of the rules introduced in 2017).
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On 16 July 2018, the draft Taxation Laws Amendment Bill, 2018 and the draft Tax Administration Laws Amendment Bill, 2018 were released by the National Treasury and the South African Revenue Service for public comment.
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The South African Revenue Service (“SARS”) released its long-awaited Service Charter (“the Charter”) on Sunday, 1 July 2018 (the start of the 2018 Tax Season).
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The recent Crookes Brothers judgment is the first South African judgment to deal with the so-called “quasi-equity” concept in Section 31(7) of the Income Tax Act, 1962.
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SARS has published a draft of the annual public notice requiring taxpayers to furnish income tax returns for the 2018 year of assessment. It is anticipated that the notice will be formally gazetted on 15 June 2018.
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SA’s CbC regime applies to financial years of multinational groups commencing on or after 1 January 2016. This means that the first CbCR, MF and LF returns are due to be submitted throughout the course of 2018.
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The HPL on sugary beverages came into effect on 1 April 2018 and has been levied since that date. To ensure compliance with the Customs and Excise Act, all local manufacturers of sugary beverages must be registered with and obtain a licence from the South African Revenue Service (“SARS”) and must prepare and submit monthly accounts (returns).
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SARS published Issue 2 of the Guide to Understatement Penalties on 18 April 2018. An understanding of this guide may be useful when under audit and at risk of understatement penalties.
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On 12 April 2018, the Davis Tax Committee released its four final reports and announced the conclusion of its work based on its Terms of Reference.
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The diesel refund scheme provides relief from the Fuel Levy and Road Accident Fund (“RAF”) Levy.
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Lesotho has issued an extraordinary Government Gazette , Volume 63, No.24, dated 23 March 2018, confirming that the VAT rate will be increased on 1 April 2018.
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Lesotho has announced that the VAT rate will increase by 1 percentage point, to 15% (standard rate), with effect from 1 April 2018 (the “effective date”).
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Sonja Nel
Associate Director, PwC South Africa
Tel: +27 (0)11 797 4207
Email
