South Africa Tax Agency Issues General Ruling Clarifying Credit Note Requirements for Prepaid Voucher Deductions

The South African Revenue Service May 21 issued Binding General Ruling No. 72, clarifying credit note requirements for prepaid voucher deductions. The ruling clarifies: 1) circumstances where a telecommunications company is allowed to make a tax adjustment under Section 21(2) of the VAT Act; 2) that specific information regarding a recipient must be reflected on a tax invoice unless the credit note relates to specified supplies under 5,000 South African rand (US$273); 3) that a telecommunications company must issue, in electronic format, a credit note to a subscriber, and that the subscriber will be notified via SMS that the relevant ...