South Africa Legal Information Institute Posts Judgment Clarifying Zero-Rated VAT on Services to Nonresidents

The South African Legal Information Institute Feb. 21 posted online the Tax Court Judgment for Case No. VAT 22184, clarifying the zero-rated VAT on services provided to nonresidents. The taxpayer was a destination management company operating in South Africa and providing services to foreign tour operators (FTOs). The taxpayer claimed zero-rated VAT for a supply of tourism services to nonresident FTOs, levying output VAT on commissions and submitting VAT returns accordingly. The Tax Agency argued the taxpayer directly provided tourism services to nonresident tourists, which were ineligible for zero-rating, and the taxpayer appealed. The Tax Court upheld the taxpayer’s appeal, ...