South Africa Tax Agency Issues General Ruling Clarifying VAT Treatment of Cash Transaction Rounding Differences

The South African Revenue Service Aug. 28 issued Binding General Ruling No. 65, clarifying the VAT treatment of rounding differences in cash transactions. The ruling clarifies: 1) circumstances and conditions under which a supplier need not issue a credit note for rounding differences in the cash sale of goods and services; 2) the requirement that tax invoices indicate input tax deductions on adjusted amounts; 3) adjusted consideration is allowed only for standard-rated supplies; and 4) recipient vendors must deduct input tax on the adjusted amounts for cash transactions based on tax invoices, and perform a reasonable split to deduct input ...