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
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.