TIR 360 TIR Digital Magazine

TIR on Twitter
Cruises

ASATA TO CLARIFY SARS VAT INTERPRETATION

Date published 21.08.2017

THE ASSOCIATION of Southern African Travel Agents will meet with officials from the South African Revenue Service next month to attempt to resolve the issue of zero-rating on international air transport and VAT calculations on additional and supplementary commissions.

ASATA Chief Executive Officer Otto de Vries said last week the association was hoping for clarity on SARS’ interpretation of the rules.

There has been concern SARS could further backdate changes and charges for five years, which would have significant financial implications for agents, further exacerbated if penalties and interest were applied.

ASATA had advised members that received audit notices to apply for a 21-day extension and seek legal advice.

At the time, ASATA explained SARS believed additional supplementary commissions were for the supply of some other service and that it should be subject to a 14 percent tax, irrespective of the fact that the underlying service was either for the arrangement of local or international travel.

ASATA maintains the arrangement of international travel is zero-rated in terms of the current VAT Act and 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”.

• See the September issue of the TIR for more on this story, available online at www.tir.co.za from the 1st of the month.


<< Back to current enews | << Back to archive

Read the full editions of TIR
© Copyright 2017, TIR Southern Africa and Galileo Southern Africa, All rights reserved.