ACT : VALUE-ADDED TAX ACT NO. 89 OF 1991 (the VAT Act)
SECTION : SECTION 1, DEFINITION OF THE TERM "INPUT TAX” READ WITH SECTIONS 16(2) AND 16(3)
SUBJECT : DOCUMENTARY PROOF REQUIRED IN TERMS OF SECTION 16(2) TO SUBSTANTIATE A VENDOR’S ENTITLEMENT TO "INPUT TAX” OR A DEDUCTION AS CONTEMPLATED IN SECTION 16(3)
This Note provides guidelines on the documentary proof that must be obtained and retained under section 16(2) to substantiate a vendor’s entitlement to "input tax” as defined in section 1, or a deduction as contemplated in section 16(3).
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.