- SARS issued Binding Private Ruling No. BPR 415 on VAT for sale of fixed assets and JV interest.
- A South African company sold assets, including a 36.36% JV interest, to a UK company.
- The JV operated the taxpayer’s fixed assets on a cost recovery basis for the taxpayer’s benefit.
- The assets sold were connected to the taxpayer’s enterprise.
- The sale of both the fixed assets and JV interest is subject to the standard VAT rate.
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.
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