Zero-Rated VAT on Services for Offshore Investments Not Listed on South African Exchange

VAT ruling VR 009 issued on 28 March 2025 under the Value-Added Tax Act 1991
Zero rate of VAT applies to services supplied directly in respect of investments outside South Africa not listed on a South African Stock Exchange
Applicant provides administration and management services for investments located outside the Republic
Services are zero-rated if investments are not listed on a South African Stock Exchange
Ruling is based on sections 11(2)(g)(i) and 11(3) of the VAT Act
Applicant is a collective investment scheme service provider in the financial services industry
Applicant supplies services for a fee based on a percentage of assets under management
Investment policies allow for investments in both offshore and local financial instruments, listed or unlisted
Ruling is subject to standard terms and conditions issued by the Commissioner

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.