CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. South African VAT Regime Largely Appropriate, DTC Says

South African VAT Regime Largely Appropriate, DTC Says

by Mary Swire, Tax-News.com, Hong Kong

31 August 2016


The Davis Tax Committee (DTC), in its recently released final report on tax policies to support small- and medium-sized enterprises, made a number of recommendations in the area of value-added tax.

The Committee said South Africa's compulsory VAT registration threshold compares favorably to international standards and said there does not appear to be any justification for raising it.

Likewise it said that there is no reason to review the threshold for cash basis VAT reporting, which is currently limited to those companies with a turnover of no more than SAR2.5m per year.

The Committee noted the distress caused to SMEs by long outstanding debts and said the issue cannot be ignored. The DTC recommended that the National Treasury should investigate the introduction of a debtors' allowance where SMEs are allowed to adjust the VAT computation when debtors' balances exceed 90 days.

Last, it said the DTC VAT sub-committee should consider time limits to be imposed on SARS with regard to all tax refunds.

TAGS: South Africa | compliance | VAT registration / deregistration | tax | value added tax (VAT) | standards | VAT refunds | VAT compliance matters | Africa | Tax

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »