Page 4 - Chapter 32 - VAT Part 2
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11. OUTPUT VAT: EXEMPT SUPPLIES
No output tax! s 12 NO input tax!
11.1. Financial services [s 12(a) and s 2]
- s 2(1) list the financial services that are exempt ito s 12(a).
- s 2(2) defines the terms* used in the list mentioned above.
- Fees on these financial services are not exempt e.g.
→ Bank charges: internet bank charges, service fees, transaction
costs etc.
Exempt financial services and transport services are subject
to these services listed under the zero rated items!
Zero rate [s 11(2)] IS STRONGER THAN exempt supplies [s 12]
