- South African Legal Information Institute posted Tax Court Judgment clarifying zero-rated VAT on services to nonresidents
- Destination management company in South Africa provided services to foreign tour operators
- Taxpayer claimed zero-rated VAT for tourism services to nonresident FTOs
- Tax Agency argued taxpayer provided services directly to nonresident tourists, ineligible for zero-rating
- Tax Court upheld taxpayer’s appeal, stating taxpayer’s role was limited to assisting with tour assembly
- Taxpayer’s limited role lacked direct sales of tourist packages, personal liability to suppliers, or decision-making authority
- Tax Agency’s approach was inconsistent with previous approvals and evidence presented
Source: news.bloombergtax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
