- Title
- The value-added tax implications in respect of the supply of services by foreign companies in South Africa
- Creator
- Walker, Dean Thomas
- Subject
- Value-added tax
- Subject
- Taxation
- Subject
- Foreign company registration
- Date Issued
- 2024-04
- Date
- 2024-04
- Type
- Master's theses
- Type
- text
- Identifier
- http://hdl.handle.net/10948/64305
- Identifier
- vital:73673
- Description
- A foreign company providing services in South Africa may, depending on the nature of the services rendered, do so directly or through its branch. Where the foreign company or its branch in providing such services falls within the ambit of the compulsory registration requirements set out in section 23, the foreign company or its branch is obliged to register as a vendor and the provisions of the VAT Act thereafter apply to such foreign company or its branch. The nature of the services rendered determine whether it is the foreign company or its branch which is obliged to register as a vendor. Where the services rendered constitute 'electronic services' falling within the scope of paragraph (vi) of the enterprise definition, it is the foreign company which must register as a vendor and not its branch. In all other cases (apart from the supply of 'imported services'), where services are rendered in South Africa, it is the branch which must register as a vendor, unless it is a 'dependent agent' of the foreign company as envisaged in the Wenco case 1, in the sense that it has no clients of its own in South Africa and supplies only services on behalf of the foreign company. In such a case the branch does not conduct an 'enterprise' and its foreign company must register as a vendor. Where a dependent branch supplies services to the foreign company's main business abroad, the supply is not zero-rated in terms of section 11 (2)(o) as, on the authority of the Wenco case, the provisions of section 8(9) have no application in such a case. Generally, where a foreign company or its branch supplies services in South Africa and is obliged to register as a vendor, output tax is levied in terms of section 7(1 )(a) and an input tax deduction may, in certain circumstances, be claimed provided that the foreign company or its branch is actually registered for VAT. In the case of 'imported services' it is the recipient which is liable for VAT thereon in certain circumstances.
- Description
- Thesis (LLM) -- Faculty of Law, 2024
- Format
- computer
- Format
- online resource
- Format
- application/pdf
- Format
- 1 online resource (94 pages)
- Format
- Publisher
- Nelson Mandela University
- Publisher
- Faculty of Law
- Language
- English
- Rights
- Nelson Mandela University
- Rights
- All Rights Reserved
- Rights
- Open Access
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- Downloads: 8
Collections
NMU Department of Mercantile Law
| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | SOURCE1 | DT Walker. April 2024 (1).pdf | 2 MB | Adobe Acrobat PDF | View Details Download |