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Should boxing clubs charge VAT?

09 April 2015   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

Q: Should boxing clubs charge VAT on services rendered to their clients?

A: A recreational club can be a VAT vendor like any other business and is subject to the same registration threshold notwithstanding that it is income tax exempt for its non-trading income. For a further discussion on this see SARS Guide on recreational clubs at para 29.9.3. Should the club become liable to register (i.e. more than R1m taxable supplies per 12 month period) then the club fees will attract VAT.

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.


The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

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