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ASATA CAUTIONS AGENTS ON VAT AUDITS

Date published 13.03.2017

THE ASSOCIATION of Southern African Travel Agents is to collect input from members on recent audit findings by the South African Revenue Service on the application of zero-rating on international air transport and VAT calculations on additional and supplementary commissions. ASATA has advised members, who are subject to audit, to apply for a 21-day delay and ask for legal advice on the changes.

ASATA said it had already been advised that several members had received audit notices from SARS.

The association met with officials at the department late last year to discuss the issue. At that time, ASATA said SARS believed additional supplementary commissions “were for the supply of some other service and that it should be subject to 14 percent, irrespective that the underlying service was either for the arrangement of local or international travel”.

According to ASATA, the arrangement of international travel is zero-rated in terms of the current VAT Act but “SARS’ view was that it does not automatically follow that the additional or supplementary commissions are… ASATA believes those charges should be zero-rated “because there is no other supply and that the arranging of international transport and the selling of tickets is one and the same thing”.

“[Retailers] will be required to respond to the findings within 21 days of receipt… Prior to sending the response to SARS, we would request that you share it with ASATA. This will further guide and inform how the industry will look to respond to the matter, as a collective and whether or not we believe we have grounds to challenge SARS’ interpretation [of] the Act.”

• Send feedback on this story to sarah@tir.co.za for a full report in the April issue of TIR.


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