- The ruling addresses VAT treatment for supplies by municipalities to national or provincial governments.
- It clarifies VAT implications based on transaction nature and contractual capacity.
- Government spheres must adhere to constitutional powers and functions.
- Assignments involve municipalities taking over functions with VAT consequences.
- National assignments require agreements and consistency with parliamentary acts.
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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