Chris Eagar
VAT practitioner at VATiQ VAT consultants & Finvision VAT Specialists (Pty) Ltd
Out of India comes news of an interesting judgment, in terms whereof: ““We set aside the advance ruling issued by AAR and hold that prize money/stakes will not be subject to GST in the absence of any supply,” while adding that applicant is not entitled to avail any Input Tax Credit (ITC)” (see our post HERE, where we also refer to a similar case of the ECJ).
In South Africa, the Revenue Service has purportedly solved the problem by introducing a zero-rating provision, section 11(2)(x) to the VAT Act, which provides for the application of VAT at the zero rate where: “the services are supplied by a vendor, being the owner of a horse, to the operator of a horse-racing event to the extent of any consideration paid as a result of the successful participation of that horse in that event.”
Source: linkedin.com
