A critical analysis of the vat apportionment method in the banking sector in South Africa

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dc.contributor.authorChitando, Makgolane Kutlwano
dc.date.accessioned2019-07-30T09:06:26Z
dc.date.available2019-07-30T09:06:26Z
dc.date.issued2018
dc.descriptionA research report submitted to the Faculty of Commerce, Law and Management in partial fulfillment of the requirements for the degree of Master of Commerce (specialising inTaxation) 2018en_ZA
dc.description.abstractValue-Added Tax (VAT) has the standing of being a fairly simple tax. Where vendors solely supply taxable goods and services, the VAT on expenditure acquired for the sole mandate of making taxable supplies may be recovered from the VAT imposed on their output. VAT is therefore a tax on the value added at every stage of production. Accordingly, the tax is levied on the value of the final product but is collected in small portions from each part in the supply chain. ―In the banking sector, consumers are not purchasing financial services from the bank, so there is no sale on which VAT must be imposed. This has resulted in the VAT exemption of financial transactions as it is difficult to define the value added of financial services‖. (Mirrlees et al 2011:196). The exemption of financial transactions raises a number of complicated issues for banks as there is a requirement to apportion input credits. This is common to all countries operating a VAT system, although the basis of apportionment differs. The intention of this research report is to draw a distinction between the taxing of financial services in South Africa compared to other countries. This research report will analyse the appropriateness of the apportionment method approved by SARS for the banking sector in light of the concept of direct attribution of costs. Through an analysis of the foreign treatment on the matter of VAT apportionment and the taxation of financial transactions, this study will seek to determine whether the taxation of financial transactions in the South African VAT System and the VAT apportionment method approved by SARS for the South African banking sector is consistent with international best practiceen_ZA
dc.description.librarianMT 2019en_ZA
dc.facultyFaculty of Commerce, Law and Management
dc.identifier.urihttps://hdl.handle.net/10539/27816
dc.language.isoenen_ZA
dc.rights.holderUniversity of the Witswatersrand, Johannesburg
dc.schoolSchool of Accountancy
dc.subjectValue-Added Tax (VAT)
dc.subjectSouth African VAT System
dc.subjectSouth African Revenue Services (SARS )
dc.subjectSouth African banking sector
dc.subjectVAT Apportionment method
dc.subjectUCTD
dc.subject.otherSDG-8: Decent work and economic growth
dc.titleA critical analysis of the vat apportionment method in the banking sector in South Africaen_ZA
dc.typeDissertationen_ZA
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