Title page for ETD etd-03082012-155747

Document Type Master's Dissertation
Author Cicero, Albertus Benjamin
Email ciceroA@eskom.co.za
URN etd-03082012-155747
Document Title Value-Added Tax : input tax apportionment from a South African perspective
Degree MCom
Department Taxation
Advisor Name Title
Prof M Cronje Co-Supervisor
Ms H du Preez Supervisor
  • insetbelastingkrediet
  • Suid Afrika
  • South Africa
  • Value-Added Tax
Date 2012-04-16
Availability restricted
In South Africa and other countries with a VAT system, it is the final consumer who mainly carries the burden of VAT. This stems from the fact that VAT registered vendors are able to claim almost all the VAT paid on expenses incurred as an input tax.

VAT registered vendors who are involved in making both taxable and exempt supplies are not always able to claim all or some of the VAT incurred on those expenses used for a mixed purpose (i.e. for both taxable and exempt supplies). Such vendors are obliged to apportion the VAT incurred on 'mixed-use input expenses' according to some acceptable method. Although various apportionment methods are available, the standard turnover-method is the default method used in South Africa. Vendors who wish to use another method must apply to the South African Revenue Service (SARS) for permission to do so.

A detailed study of the VAT apportionment regime in South Africa, Australia and the United Kingdom is undertaken in this study. Reference to applicable legislation and apportionment methods in each of these countries are made. Court cases dealing with VAT apportionment are discussed and South Africa is critically compared to the other two countries.

AFRIKAANS : In Suid-Afrika en ander lande met 'n BTW-stelsel is dit die eindverbruiker wat hoofsaaklik die las van BTW dra. Dit spruit voort uit die feit dat ondernemers wat geregistreer is vir BTW in staat is om die meeste van die BTW wat betaal is by die aankoop van goedere en dienste terug te eis as ‘n insetbelastingkrediet. Ondernemers wat beide belasbare en vrygestelde/ander uitsette lewer, word nie altyd toegelaat om die volle BTW ten opsigte van uitgawes aangegaan vir gemengde doeleindes (naamlik belasbare en vrygestelde doeleindes) te eis nie. Sulke ondernemers wat gemengde uitsette lewer is verplig om ‘n proporsionele toedeling van die insetbelasting te maak. Alhoewel verskeie toedelingsmetodes beskikbaar is, word die omsetmetode as die standaard in Suid-Afrika aanvaar. Ondernemers wat verkies om ‘n ander metode te gebruik moet goedkeuring van die Suid-Afrikaanse Inkomstediens verkry. Die toedelingsregime vir BTW in Suid-Afrika, Australië en die Verenigde Koninkryk word in hierdie studie ontleed. Die toepaslike BTW-wetgewing asook die toedelingsmetodes word in elke land ontleed. Hofsake wat sekere beginsels en riglyne bepaal het word uiteengesit en daar word ook krities gekyk na hoe Suid-Afrika vergelyk met die ander twee lande.

Copyright 2011, University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria.

Please cite as follows:

Cicero, AB 2011, Value-Added Tax : input tax apportionment from a South African perspective, MCom dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://upetd.up.ac.za/thesis/available/etd-03082012-155747 / >


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