South Africa Tax Agency Clarifies Application of Varied Turnover-Based Method of Apportionment Under VAT Act

The South African Revenue Service March 31 issued VAT Ruling No. VR 016, clarifying the application of the varied turnover-based method of apportionment under the VAT Act. The taxpayer, a South African private retail company, made taxable supplies and earned various types of income from different sources stemming from its activities, which included taxable, exempt, and out of scope income. The taxpayer sought clarification regarding whether it could apply the varied turnover-based method of apportionment with effect from the commencement of the 2023 financial year, which included operational and non-operational income with specified variations. Upon review, the Tax Agency clarified ...