HOW TO DEAL WITH VAT WHEN YOU ARE ACTING AS AN AGENT
Peter Franck - VAT Specialist - Pretoria
1. In the commercial world, one often finds agents buying or selling goods and services for their principals. Where a company buys or sells goods for another group company, it will usually be acting as an agent of that company. There is no law which requires agency agreements to be in writing, agency agreements can be verbal.
2. To accommodate this phenomenon, section 54 of the Value-Added Tax Act, 1991, provides as follows:
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.