VAT Focus - Agency Rules
The Value-Added Tax (VAT) treatment of agency transactions is relatively straight forward. On the other hand, establishing whether a person is acting as the agent or principal in respect of a supply of goods or services can be very complex.
The term “agent” is not defined in the VAT Act and therefore we need to refer to common law to understand this concept. Furthermore, in terms of Public Notice 748, the Commissioner of SARS may reject an application for a AT ruling to determine whether a person is acting as an agent or principal in respect of the supply of goods or services.
It is of utmost importance to understand the VAT principles concerning agents as the VAT consequences of a transaction cannot be determined until the contractual relationship between the parties is established.
During this webinar we unpack:
What is an agent?
Case law
VAT Guide 411 & Interpretation note 42
The agency mandate / contract
VAT treatment of agency transactions
General rules under section 54
Documentary requirements (including agency statements)
Disbursements vs Recovery of cost
- Overview
- United Kingdom guidelines
- Employee reimbursements
- Intercompany cross-charges
Auctioneers
Cross-border transactions
Import of goods
Export of goods
Intermediaries of foreign supplies of electronic services
System requirements
CPD/CPE 2.5 hours
COST: R1 138.50 (incl. VAT)