VAT Presentation

1
VAT Presentation

• MFSA Sessions 2007
• Presented by
• Mark Seymour

2
VAT

• Historically credit granting and only charging
  interest did not attract VAT on transactions
• NCA with cap on interest forces credit providers
  to chares fees
• New approach now attracts VAT on transactions
• VAT threshold fees and charges more than R300,000
• Business turnover more than R90,000 turnover per
  month falls within VAT threshold

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VAT (continued)

• MFSA engagement with NCR on VAT
• Engagement with NCR VAT advisor
• PWC report on interpretation and implications of
  VAT submitted to NCR
• Joint and separate processes
• Intention of the Act / regulations that fees and
  charges are VAT exclusive
• NCR undertook to provide MFSA with letter
  stipulating the intention of the ACT /
  regulations

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VAT (continued)

• MFSA further engagement with PWC
• Although intention of the legislator is VAT
  excluded, important to clarify interpretation
  with SARS
• Obtain a directive from SARS (clarifying SARS
  interpretation of VAT incl. / excl.)
• Compile training material for training session(s)
  for financial managers on practically dealing
  with VAT
• PWC was requested to provide Quote and Scope of
  work
• PWC internal approval process to continue with
  quote, and contracting with the MFSA
• Instruction has been given to PWC to continue
  with both processes

5
Thank You