Title page for ETD etd-03192012-163350

Document Type Master's Dissertation
Author Janse van Rensburg, Zendi
Email zendi@rvsconsult.com
URN etd-03192012-163350
Document Title An explorative study : place of supply rules for Value-Added Tax in South Africa
Degree MCom
Department Taxation
Advisor Name Title
Mrs H du Preez Co-Supervisor
Mr T L Steyn Supervisor
  • Value-Added Tax
  • VAT
  • place of supply
  • South Africa
  • international
  • VAT registration
  • VAT treatment
  • belasting op toegevoegde waarde
  • BTW
  • plek van lewering
  • Suid Afrika
  • internasionaal
  • BTW registrasie
  • BTW hantering
Date 2012-04-16
Availability unrestricted
Value-Added Tax (VAT) was introduced in South Africa in 1991 by the Value Added Tax Act No. 89 of 1991 (the VAT Act). The South African VAT system is based on the destination or consumption of the goods or service supplied. The initial place where these goods and services are supplied is not taken into consideration. As a result, non-residents in some instances will be liable to register as VAT vendors and account for VAT even if they are not physically present in South Africa. The absence of place of supply rules therefore impacts on determining where a supply takes place and on the VAT registration of for example non-residents.

This study aims to determine whether the South African VAT legislation, to some extent, makes provision for place of supply rules, to establish whether general place of supply rules for certain African and developed countries exist, to draw a comparison between these countries and to determine the possibility of implementing similar rules for South Africa.

The study concludes that although not sufficient, the South African VAT legislation provides for certain inferred VAT place of supply rules. Worldwide, different countries apply place of supply by different means, and it is therefore not viable to combine all the various countriesí rules into one set of rules for implementation in South Africa. However, in order for South African VAT legislation to be in line with international trends, the study suggests that South Africa should investigate and determine whether place of supply rules should not formally be introduced in its legislation. VAT place of supply rules is important, as introducing same will equip South Africa to better align itself with its international trading partners. It will enable the supplier and consumer to determine whether a person should register for VAT in South Africa, clarify where a supply takes place and at what rate VAT should be charged. It will also minimise confusion as to the application of VAT treatment of certain transactions and eliminate or limit the possibility of double or non-taxation that can arise.

AFRIKAANS : Belasting op toegevoegde waarde (BTW) het in Suid Afrika in werking getree in 1991 deur die implementering van die Belasting op Toegevoegde Waarde Wet No. 89 van 1991 (die BTW Wet). Die Suid Afrikaanse BTW sisteem is van so aard dat BTW betaalbaar is by die uiteindelike bestemming of finale gebruik van goedere en dienste wat gelewer word. Die oorsprongklike plek van lewering word nie in ag geneem nie. Die gevolg hiervan is dat nie-inwoners in sommige gevalle aanspreeklik sal wees om te registreer vir BTW ondernemers en om BTW te betaal, selfs al is hulle nooit fisies in Suid Afrika teenwoordig nie. Die afwesigheid van plek van lewering reŽls het Ďn invloed op die bepaling van die plek van oorsprong van die lewering asook die BTW registrasie van byvoorbeeld, nie-inwoners.

Die studie het ten doel om te bepaal of Suid Afrikaanse wetgewing tot Ďn seker mate plek van lewering reŽls insluit, om te bepaal of algemene plek van lewering reŽls vir sekere Afrika en ontwikkelde lande in werking is, om Ďn vergelyking tussen hierdie lande se reŽls te trek en om die moontlike implementering van soorgelyke reŽls in Suid Afrika te ondersoek.

Die slotsom van die studie is dat alhoewel nie voldoende, die Suid Afrikaanse BTW wetgewing wel voorsiening maak vir toevallige plek van lewering reŽls. Verskillende lande hanteer plek van lewering reŽls op verskillende wyses en dit is dus nie moontlik om een stel gekombineerde reŽls op te stel en toe te pas in Suid Afrika nie. Om die Suid Afrikaanse BTW wetgewing egter in lyn met internasionale tendense te bring, stel die studie voor dat Suid Afrika ondersoek instel en bepaal of plek van lewering reŽls nie formeel ingesluit moet word in diewetgewing nie.BTW plek van lewering reŽls is belangrik omdat die implementering daarvan Suid Afrika beter sal toerus om in lyn te wees met sy internasionale handelsvennote. Dit sal ook die verskaffer en verbruiker in staat stel om te bepaal of Ďn persoon in Suid Afrika moet registreer vir BTW, duidelikheid verskaf rakende die oorsprong of plek van lewering en teen watter koers BTW gehef moet word. Dit sal ook die verwarring rondom die korrekte hantering van BTW op spesifieke transaksies verminder en die potensiaal van dubbel of geen belasting beperk of elimineer.

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:

Janse van Rensburg, Z 2011, An explorative study : place of supply rules for Value-Added Tax in South Africa, MCom dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://upetd.up.ac.za/thesis/available/etd-03192012-163350 / >


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