See page 63 and further
Every supply of goods or services by a vendor in the course or furtherance of that
vendor’s enterprise is subject to VAT at the standard rate under section 7(1)(a) of the
VAT Act, unless the supply is exempt, zero-rated or falls outside the scope of the VAT
Act.
Under section 12(a) of the VAT Act, the supply of “financial services” is exempt from
VAT. The term “financial services” is defined in section 1(1) of the VAT Act as being
the activities which are deemed by section 2 to be financial services.
For purposes of this document and the analysis that follows, the REIT, controlled
company and holder of shares or linked units are assumed to be vendors for VAT
purposes.
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Source: gov.za
