This reference guide provides information and guidelines regarding the value-added tax (VAT) treatment of foreign donor funded projects (FDFPs). This guide does not deal with all the legal detail associated with VAT and is not intended for legal reference. For more details on VAT in general, see the VAT 404 – Guide for Vendors (VAT 404). All references to sections are to sections of the Value-Added Tax Act 89 of 1991 (VAT Act), unless the context indicates otherwise. The TaxAdministration Act 28 of 2011 and the Income Tax Act 58 of 1962 are referred to as the “TA Act” and the “Income Tax Act” respectively. The terms “Republic” and “South Africa” are used interchangeably in this document as a reference to the sovereign territory of the Republic of South Africa, as set out in the definition of “Republic” in section 1(1). The information in this guide is based on the VAT Act and the TA Act as at the time of publishing, including the Taxation Laws Amendment Act 34 of 2019 and the Tax Administration Laws Amendment Act 33 of 2019. The information in this guide is issued for guidance only. This guide is not an “official publication” as defined in section 1 of the TA Act and accordingly does not create a practice generally prevailing under section 5 of that Act. It is also not a binding general ruling under section 41B of the VAT Act.
Source gov.za
