Value added tax (VAT)

Question 1

What is VAT?

Answer 1

It is an indirect tax, based on consumption in the economy.

Question 2

What is Revenue raised for?

Answer 2

Revenue is raised for the government by requiring certain traders to register and to charge VAT on taxable supplies of goods or services.

Question 3

What is the rol of SARS when it comes to VAT?

Answer 3

SARS is a government agency, which administers the VAT act and ensures that the tax is collected and that the tax law is properly enforced

Question 4

What is another name for VAT?

Answer 4

Another name for VAT is GST(Goods and Services Tax)

Question 5

What is the definition of Standard Vat?

Answer 5

A standard-rated Supply is a supply of goods or services, which is subject to VAT at the rate of 15%

Question 6

What is zero-rated tax?

Answer 6

Zero rated supplies are taxable supplies on which vat is levied at a rate of 0%. The application of the zero rate must be supported by documentary proof acceptable to the commissioner