The definition of “enterprise” in section 1 of the VAT Act includes the activities of the “welfare organization”. The VAT Act defines the term “welfare organization” to mean any public benefit organization contemplated in paragraph (a) of the definition of “public benefit organization” in section 30(1) of the Income Tax Act on any welfare activity determined by the Minister for purposes of the VAT Act.
The inclusion of welfare activities in the definition of “enterprise” effectively means that entities who qualify as welfare organizations may register for VAT purposes, notwithstanding that these entities may not be making any taxable supplies, subject to VAT at the standard rate of 15% or zero rate.
Source: mondaq
