South Africa VAT budget

The latest South African budget refrained from raising the standard VAT rate from the current 14% to help deal with the fast growing state deficit. But it did include a number of VAT changes, including:

• A review of the VAT treatment of vouchers, gifts or discounts granted by loyalty schemes
• A review output VAT relief where receivables from connected parties are forgiven
• The option for the South African tax office to accept alternatives evidence for input VAT deductions beyond purchase invoices
• The right to deduct input VAT incurred on part-gold goods is to be reinstated for VAT registered businesses