- Foreign donor funded projects (FDFPs) are projects funded by international donors.
- FDFPs are exempt from South African VAT.
- Implementing agencies can deduct input tax on goods and services acquired for FDFPs.
- Legislative changes in 2020 simplified the VAT registration process for FDFPs.
- This guide provides information on the VAT treatment of FDFPs.
- Part I introduces FDFPs and the different persons involved.
- Part II provides guidance on VAT registration requirements for FDFPs.
- Part III explains the VAT consequences of transactions related to FDFPs.
- Part IV outlines documentary and record keeping requirements.
- Part V provides examples illustrating VAT principles.
Source: sars.gov.za
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.
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