Page 33 - Chapter 32 VAT Part 1
P. 33
SAICA SYLLABUS COURT CASE: De Beers (74 SATC 330)
Services acquired will not be “imported services” if they are:
- not utilised in SA, or
- utilised in SA but not utilised for the making of taxable supplies.
In order to determine whether services will be utilised in “the
making of taxable supplies” the services must be applied to
supply goods or services in the course of the furtherance of an
“enterprise”.
What an “enterprise” consists of is a factual question.
Thus, in order to determine whether services acquired will qualify as
an “imported service” it must be established whether the service is
acquired for “the making of taxable supplies” and whether it will
be “in the furtherance of the enterprise”.
VAT will only be levied on “imported services” to the extent
that it will be utilised for the making of non-taxable supplies.
No input VAT will be allowed on the VAT charged on the
importation of services.
