Page 413 - Juta's Indirect Tax

IN 42 VaLue-added tax act: InterPretatIOn nOtes IN 42
Brie ng Note: Interpretation Note 42: The Supply of Goods and/or Services by the Travel and Tourism Industry
A new Interpretation Note regarding the value-added tax (VAT) implications for supplies by local travel agents, tour operators and travel brokers to foreign travel operators and foreign tourists has been initiated by the South African Revenue Service (SARS).
• •
•
The purpose of this Interpretation Note is to provide—
clarity on the interpretation of section 11 (2) (l) of the Value-Added Tax Act, 1991 (VAT Act) applicable to the tourism industry;
guidance in assisting travel agents, tour operators and travel brokers, who are registered as vendors for VAT purposes, in applying and understanding the VAT legislation for the supply of tour packages to non-residents (foreign tourists) within the travel and tourism industry (excluding professional hunters and taxidermists); and
clarity on the VAT implications on the supply of game viewing in South Africa (the Republic).
The draft version of this Interpretation Note which was published for public comment during March 2006 has been updated to incorporate certain comments received. This Interpretation Note does not include any material changes.
This Interpretation Note, unless otherwise speci cally stated, does not constitute a binding general ruling as envisaged in section 76P of the Income Tax Act, 1962 as made applicable to the VAT Act by section 41A of the VAT Act.
This Note is available on the SARS website at www.sars.gov.za under Interpretation Notes.
Juta’s IndIrect tax 2016 405