Q: There is client who is involved in the training and development of small
and medium enterprises (SMEs) nationally. I would like to know their status in
terms of paying VAT. Are they supposed to be charging VAT or not?
supply of education and training will constitute a taxable supply for VAT
purposes unless specifically zero rate or exempt. We assume all the training
occurs in South Africa to SA residents. The exemption from VAT for the supply
of educational services only applies to the supplies listed in section 12(h) of
the VAT Act, which includes supplies made by the state or a registered school,
by a higher education institution established or registered in terms of the
Higher Education Act, by an approved Public Benefit Organisation for specified types
of education and services by a university or technikon.
would therefore have to determine whether the vendor is so registered above and
making supplies in terms of such registered activities.
Disclaimer: Nothing in this query and answer should be construed as
constituting tax advice or a tax opinion. An expert should be consulted for
advice based on the facts and circumstances of each transaction/case. Even
though great care has been taken to ensure the accuracy of the answer, SAIT do
not accept any responsibility for consequences of decisions taken based on this
query and answer. It remains your own responsibility to consult the relevant
primary resources when taking a decision.
Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.