FAQs on the application of Value-Added Tax (VAT) to Confirmation transactions

Published: 18/06/2020

Answer:

What is VAT?

Value-added tax (VAT) is a consumption tax placed on products whenever value is added at each stage of the supply chain, from production to the point of sale. VAT is payable by both businesses and individuals.

How will VAT apply to Confirmation services?

From 2 July 2020, Confirmation transactions in South Africa are subject to 15% VAT in compliance with South African Revenue Service regulations.

Why is VAT being charged?

VAT is a tax that Confirmation customers in South Africa are obligated to pay on certain goods and services, including electronic services. Confirmation, which is now part of Thomson Reuters, is legally required to collect VAT on these transactions.

What should I do?

Right now, you don’t need to take any action. The VAT will be automatically applied to your transactions in the Confirmation platform from 2 July 2020 and this will be reflected on the purchase receipt sent to the individual who has initiated the request.
It is recommended for you to set up an automatic rule on your mailbox to send all purchase receipts to your finance team for processing.

Is it compulsory to pay VAT?

Exceptions to VAT will be published by the South African Revenue Service. There may be a possibility for you to claim back your VAT payments, provided it is permitted by law and you meet the tax authority’s requirements. Please contact your tax authority for more information or visit the South African Revenue Service’s website .

Rate this article:

Processing...

(Popularity = 0/100, Rating = 0.0/5)