The issues between the parties are inter alia, firstly, whether the supply of accommodation to tertiary institutions in terms of certain lease agreements constitutes the supply of commercial accommodation and whether the taxpayer liable to account for VAT on only 60 % of the rental income it receives in accordance with the provisions of sections 10 (10) of the VAT Act.
The court held that the taxpayer is obliged to levy and account for VAT on the rental it receives for consideration because the letting of accommodation by the taxpayer to TUT in terms of the lease agreement comprises of a taxable supply of commercial accommodation for VAT purposes. Further, the taxpayer is liable to account for VAT on only 60 percent of the rental it receives in accordance with section 10 (10) of the VAT.
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.
MINIMUM REQUIREMENTS TO REGISTER
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.