Value-added tax and financial services

Lebos, Jared Joseph
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Value-added tax (VAT) and similar taxes known as General Sales Tax (GST) are indirect taxes which are currently levied in over 150 countries world-wide. The republic of South Africa (South Africa) introduced VAT through the enactment of the Value-added Tax Act 89 of 1991. Financial services are exempt, by the Value-Added Tax Act 89 of 1991, largely due to the South African VAT system being based on the New Zealand GST system. It is generally accepted that in theory financial services should be subjected to Value-Added Tax. This study will outline the VAT effects of certain common financial services and how financial service providers may account for the related input and output tax. Additionally the application of the VAT Act against some of the more complex financial arrangements, including new financial instruments that have gained popularity with the increased availability to technologies such as the internet, will also be examined. This report is limited to the application of the VAT Act only and does not consider other fiscal legislation and its interaction with the VAT Act in this regard. Key Words Value-Added Tax, Financial Services, Exemptions, Complex Financial Arrangements
Thesis (M.Com. (Taxation))--University of the Witwatersrand, Faculty of Commerce, Law and Management, School of Accountancy, 2017
Online resource (141 leaves)
Lebos, Jared Joseph (2017) Value-added tax and financial services, University of the Witwatersrand, Johannesburg, <>