Page 478 - Juta's Indirect Tax

IN 81 (2) VaLue-added tax act: InterPretatIOn nOtes IN 81 (2)
In this regard, services may include the supply of transport services to fare-paying passengers by road or rail (for example, shuttle services) which is exempt from VAT under section 12(g). This particular exemption is not applicable to transport provided in a game viewing vehicle which is subject to VAT at the standard rate. For further information, refer to Interpretation Note No. 42 dated 2 April 2007 ‘The Supply of Goods and/or Services by the Travel and Tourism Industry’ (or as updated).
4.5 Single charge for a hunting safari package
In many instances, the hunting out tter or another person assembles a hunting safari package consisting of various goods and services (including the trophy) to be marketed to foreign hunters. Even though a single charge may be paid for a hunting safari package, multiple goods and services may be supplied as part of the hunting safari package. The supply of these goods and services cannot be regarded as being merely incidental to the supply of the trophy. The hunting package must therefore be separated into the various supplies provided such as accommodation, food, refreshments, trophy fee, professional hunting services and taxidermy services.
The vendor will then be obliged to allocate a reasonable portion* of the all-inclusive charge to each of the supplies of goods and services incorporated in the package and charge VAT at either the zero or standard rate depending on the nature of the particular goods or services supplied.
5. Conclusion
Accommodation, hunting services and other goods or services supplied or rendered while the foreign hunter is present in the Republic are subject to VAT at the standard rate, unless the supply is exempt under section 12. The supply of the trophy by the hunting out tter to the foreign hunter quali es for zero-rating if the trophy is subsequently exported to the foreign hunter. The supply of dip and pack and taxidermy services quali es for zero-rating if the trophy is exported to the foreign hunter. The zero-rating of the abovementioned supplies are subject to the relevant supplier retaining supporting documentary evidence as is acceptable to the Commissioner.
Should further clarity on any of the matters dealt with in this Note be required, it is recommended that an application for a VAT ruling or VAT class ruling be submitted to the Commissioner either by e-mail to VATRulings@sars.gov.za or by facsimile on +27 86 540 9390. The application must be accompanied by a completed VAT301 form and must comply with the provisions of section 79 of the Tax Administration Act No. 28 of 2011, excluding section 79(4)(f), (k) and (6).
Legal and Policy Division
SOUTH AFRICAN REVENUE SERVICE
Annexure – The law Section 1(1) – De nition
‘commercial accommodation’ means—
(a) lodging or board and lodging, together with domestic goods and services, in any house, at, apartment, room, hotel, motel, inn, guesthouse, boarding house, residential establishment, holiday accommodation unit, chalet, tent, caravan, camping site, houseboat or similar establishment, which is regularly or systematically supplied and where the total annual receipts from the supply thereof exceeds R60 000 in a period of 12 months or is reasonably expected to exceed that amount in a period of 12 months, but excluding a dwelling supplied in terms of an agreement for the letting and hiring thereof;
.. .
‘export country’ means any country other than the Republic and includes any place which is not situated in the Republic: Provided that the President may by notice in the Gazette determine that a speci c country or territory shall from a date and to the extent indicated in the notice, be deemed not to be an export country;
‘exported’ in relation to any movable goods supplied by any vendor under a sale or an instalment credit agreement, means—
(a) consigned or delivered by the vendor to the recipient at an address in an export country as evidenced by documentary proof acceptable to the Commissioner; or
.. .
(d) removed from the Republic by the recipient for conveyance to an export country in accordance with the provisions of an export incentive scheme approved by the Minister;
‘Republic’, in the geographical sense, means the territory of the Republic of South Africa and includes the territorial waters, the contiguous zone and the continental shelf referred to respectively in sections 4, 5 and 8 of the Maritime Zones Act, 1994 (Act 15 of 1994);
‘resident of the Republic’ means a resident as de ned in section 1 of the Income Tax Act: Provided that any other person or any other company shall be deemed to be a resident of the Republic to the extent that such person or company carries on in the Republic any enterprise or other activity and has a xed or permanent place in the Republic relating to such enterprise or other activity;
‘supply’ includes performance in terms of a sale, rental agreement, instalment credit agreement and all other forms of supply, whether voluntary, compulsory or by operation of law, irrespective of where the supply is effected, and any derivative of “supply” shall be construed accordingly;
‘vendor’ means any person who is or is required to be registered under this Act: Provided that where the Commissioner has under section 23 or 50A determined the date from which a person is a vendor that person shall be deemed to be a vendor from that date;
* With reference to the market value of the various goods and services supplied as part of the hunting safari package.
470 Juta’s IndIrect tax 2016