South Africa Tax Agency Clarifies VAT Consequences of Sale of Fixed Assets, Joint Venture Interest

The South African Revenue Service Nov. 12 issued Binding Private Ruling No. BPR 415, clarifying the VAT consequences of the sale of fixed assets and joint venture (JV) interest. The taxpayer, a resident company, entered into a sale agreement with an unrelated U.K. company, where the taxpayer was to dispose of assets to the U.K. company. The sale assets included the taxpayer’s interest in a JV, with the JV interest consisting of a 36.36 percent undivided interest in both the taxpayer’s fixed assets and in the JV agreement with the other JV partner regarding the specified operations, which were conducted ...