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Charies
G de Wet
BAcc, BCompt (Hons) BCom (Hons) Tax, CA(SA)
Director at PricewaterhouseCoopers, Bellville
Riana du Plessis
BAcc (Hons), BCom (Hons) Tax, CA(SA)
Manager at PricewaterhouseCoopers, Bellville
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| Introduction
| Indirect taxation analysis | Characterisation
issue: goods or services?
| Place of supply: existing provisions | Application
to electronic commerce | Tax compliance and administration
| The way forward | Author biographies |
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| 1.
Introduction |
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Consumption tax,
such as Value-added Tax (VAT) or Goods and Services Tax (GST), is probably
the most talked-about electronic commerce taxation issue. Questions in
this regard revolve around whether a Web-based sale is taxable and, if
so, what jurisdiction, if any, may collect the tax and what is the most
effective way of collecting the tax or ensuring tax compliance. In addition,
many electronic commerce enterprises may be running at a loss and are
therefore indifferent to income tax – at least for now. However,
consumption tax is immediate. With the rapid increase in Web-based sales,
an increasing number of purchases are made free of indirect tax when the
buyer ignores the requirement to voluntarily remit the tax, causing an
increasing strain on state tax revenues. Consumption tax issues have therefore
been recognised to have more immediacy than direct taxation issues.
The
problems presented by electronic commerce for the integrity of VAT are
not in themselves new; it is more a question of electronic commerce exacerbating
existing tensions and difficulties inherent in the tax when dealing with
cross-border transactions, relating particularly to place of supply and
enforcement issues for non-resident suppliers of services.
In
South Africa there are currently no published rulings, tax court decisions
or relevant publications focusing on the VAT treatment of electronic commerce
operations.
In finding solutions,
the underlying principle of any VAT system, of taxing the final consumer
in the jurisdiction where the particular goods or services have been
consumed and enjoyed, will have to be taken into account. An equally
important principle is that goods and services that are provided across
borders are zero-rated by the supplier in the country of origin. This
is to ensure that consumers in the recipient country do not carry the
burden of foreign tax.
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All
major trading nations support the fundamental principle of neutrality;
i.e. economically similar income should be treated equally regardless
of whether it is earned through electronic means or through more traditional
channels of commerce. Neutrality can be achieved by adapting existing
tax principles rather than imposing new or additional taxes.
The underlying
question is whether existing indirect tax principles can be
successfully applied to the taxation of electronic commerce in a way that
will satisfy the competing demands of national revenue collecting agencies.
For VAT purposes
it is important to consider the following three concepts:
Knowledge
of the time of supply is essential as VAT on a particular supply must
be accounted for by the parties in the particular tax period within which
the tax point falls. Knowledge of the value of the supply is essential
in order to calculate VAT in respect of that value. For VAT purposes,
the place where a supply is made is referred to as the place of supply
and that is the only place where that particular supply is liable to VAT.
In traditional business this concept was relatively easy to define and
straightforward rules could be applied. The advent of electronic commerce
has, however, complicated this issue.
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| 2.
Indirect
taxation analysis |
The application
of VAT rules to electronic commerce basically raises the following
two issues, which are addressed in this section:
-
the character
of supply, i.e. the distinction between the supply of goods and
services
- the definition
of the place of supply, to establish the jurisdiction in which the place
of supply arises
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| 3.
Characterisation issue: goods or services? |
3.1
Existing provisions
In terms of the
South African Value-Added Tax Act, No 89 of 1991 (“the VAT Act”),
VAT is levied on:1
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the supply
by any vendor of goods or services in the course or
furtherance of any enterprise carried on by him/her
- the importation
of any goods into the Republic
- the supply of
any imported services by any person
The
terms “goods” and “services” are broadly defined
in the VAT Act:2
“Goods”
are inter alia defined as meaning “corporeal movable things,
fixed property and any real right in any such thing or fixed property”.
“Services”
are inter alia defined as “anything done or to be done,
including the granting, assignment, cession or surrender of any right
and the making available of any facility or advantage”.
It
follows that intangible property does not constitute goods, but
may fall within the definition of services.
The
VAT characterisation of a specific transaction is particularly relevant
for the taxable event (imports of services being taxed differently from
imports of goods), the place of supply, exemption and zero-rated transactions.
It
should further be borne in mind that the nature of the supply is to
be determined at the tax point.
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3.2
Application to electronic commerce
Although in many
situations the nature of the supply will not be altered by the use of
the Internet, a major impact of electronic commerce has been to transform
tangible property into a digitised form.
The electronic
transmission of images of certain products such as newspapers, magazines,
reference material and photographs, and the downloading of computer software
and recorded music, are becoming increasingly popular.
These digital products
present difficulties in applying VAT rules that were
written when these products did not exist.
Customers may be
allowed to modify downloaded products or to incorporate them in products
that they develop themselves, either for their own use or to sell to others.
It is not always clear whether payments to view and download such products
are, in whole or in part, payments for the use of, or for the right to
use, a copyright on the one hand or, on the other hand, payments for the
purchase of goods or services.
UK Customs regulations
on software transactions take the position that the way in which a software
product is transferred (i.e. on disk or electronically) has no impact
on its taxability. This view, ignoring the form of the transfer of the
digital product, follows the espoused principle of neutrality.
The UK has indicated
that it will consider the supply of digital products by
electronic means as supplies of services.
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There is an almost
complete lack of agreement among jurisdictions, and this poses a real
dilemma for vendors supplying digital products when sales are made in
jurisdictions with no rules.
Digital products
and services will have to be analysed with a view to developing a general
approach to their characterisation.
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| 4.
Place of supply: existing provisions |
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The South African
VAT Act has limited place of supply rules. Where these have been included,
they have been framed in general terms and are not specifically designed
to meet the requirements of the electronic era.
VAT may only be
levied on supplies that are made by a person who conducts an enterprise,
continuously or regularly, in the Republic or partly in the Republic.
The place of supply is thus indirectly woven into the charging section
by means of the definition of enterprise.3
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Any person who
continuously or regularly supplies telecommunications services to any
person who utilises such services in the Republic is deemed to conduct
an enterprise for VAT purposes in South Africa,4
even where the supplier is not resident and has no permanent establishment
or place of business in South Africa. As a consequence, all telecommunication
service providers are required to register as South African VAT vendors
if the value of the services supplied and utilised in South Africa exceeds
R150 000.
The Explanatory
Memorandum5 states that, although imported
telecommunications services are covered by the provisions for imported
services, this provision is introduced in recognition of the fact that
the tax due on imported services is rarely brought to account.
The section providing
for the zero-rating of services that are physically rendered elsewhere
was also amended to exclude the provision of telecommunications services
supplied to any person who utilises such services in South Africa.6
Since the equipment facilitating the provision of the services (e.g.
the satellite) may be situated offshore, telecommunications services
do not qualify for zero-rating if they are utilised in South Africa,
regardless of where they may be argued to be physically supplied.
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According
to the Explanatory Memorandum7 the main
target is the so-called “call back operators”. A call back
operator makes it possible to make cheaper international phone calls
by utilising telecommunications equipment and infrastructure situated
in other parts of the world.
While these provisions
have been legislated, an implementation date has not yet (May 1999)
been announced.
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Since its inception
in 1991 the VAT Act has had provisions which, in essence, have created
a “reverse charge” mechanism for services provided to certain
recipients within South Africa from other jurisdictions. In terms of these
provisions VAT is imposed on the supply of “imported services”.8
The term “imported
services” is defined as a supply of services:
The
last requirement signifies that no VAT is payable on imported services
to be used for the purpose of making taxable supplies.
Where a service
is received by a person resident in South Africa from an overseas supplier,
VAT is only payable where the services are utilised or consumed for private
purposes or for the purpose of making exempt supplies. Accordingly, a
private individual or any other person who is not entitled to an input
tax deduction in respect of the services rendered by a non-resident will
have to account for VAT on the imported service.
A “resident
of the Republic” means a person (other than a company) who is ordinarily
resident in the Republic or a company which is a domestic company.9
This provision also deems a person to be a resident of South Africa to
the extent that a person carries on any enterprise or other activity at
a fixed or permanent location in South Africa.10
In all instances
the onus is on the recipient of the imported services11
to account for VAT. The recipient must furnish the Commissioner with a
declaration and pay the tax within 30 days of the issue of the invoice
by the foreign supplier or any payment for such service, whichever is
the earlier.12
The value to be
placed on the supply of the imported services is the greater of:13
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A
specific anti-avoidance provision is aimed at preventing the avoidance
of VAT in circumstances where the services are acquired by a foreign branch
of the South African enterprise and subsequently provided to the South
African enterprise which, if the specific service had been supplied directly
by the foreign service provider, would constitute imported services.14
Imported
services will escape VAT altogether if the supply of the services is one
that, if made by a supplier in South Africa, would be either zero-rated
or exempt.15
The
penalty and interest provisions in the Act apply to the tax due on the
imported services if it is not paid within the period allowed.
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Services physically
rendered outside South Africa are zero-rated,16
while services that are supplied for and to a person who is not a resident
of the Republic and the person to whom these services are rendered is
outside the Republic at the time the services are rendered, are also zero-rated17
in certain instances. The section does not, however, include a clear distinction
of where the actual place of supply takes place.
To
the extent that intellectual property rights are for use outside South
Africa, certain services supplied in respect of these rights are furthermore
zero-rated. These include the filing, prosecution, granting, maintenance,
transfer, assignment, licensing or enforcement of intellectual property
rights, and the incidental supply of any other services which are necessary
for such services.18 Intellectual property
includes patents, designs, trademarks, copyrights, know-how, confidential
information, trade secrets and similar rights.
The crucial issue
relates to the burden of proof on the supplier which provides that where
a rate of zero per cent has been applied, the vendor shall obtain and
retain such documentary proof as acceptable to the Commissioner substantiating
his entitlement to apply the zero rate.19
The onus is thus on the vendor to substantiate the zero rate while the
actual proof that is necessary is not clearly defined particularly in
circumstances where services are provided via e-mail or over the Internet.
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| 5.
Application to electronic commerce |
5.1
Liability to register as a vendor for South African VAT purposes
It
is of vital importance in the VAT context to determine whether particular
activities constitute an enterprise (for South African VAT purposes),
taxable activity (for New Zealand VAT purposes) or business
(for UK VAT purposes), as only vendors operating an enterprise (SA),
taxable activity (NZ) or business (UK) are entitled or obliged to register
for VAT purposes.
The South African
concept is significantly broader than that of the UK, since the definition
of “enterprise” includes the activities of a business, but
is not limited to such activities.20
The question
arises as to whether a supplier, who is resident or carries on business
outside the Republic, who supplies goods and services to recipients
in the Republic, is under a liability to register as a vendor in South
Africa. No clear provision indicates when a person is conducting an
enterprise in South Africa and what the requirements of a South African
operation must be, particularly in relation to a foreign business, before
the South African legislation is considered to apply.
Although the
definition of resident deems a person to be a resident of South Africa
to the extent that a person carries on any enterprise or other activity
at a fixed or permanent location in South Africa, it should be noted
that the definition of enterprise does not require a supplier to have
a fixed or permanent establishment in South Africa in order to be conducting
an enterprise in this country. The absence of a fixed or permanent establishment
in South Africa therefore does not mean that a foreign supplier is not
conducting an enterprise in South Africa and is not liable to register
for South African VAT purposes.
It should furthermore
be noted that no definition of “telecommunication services”
was included when the telecommunication services provisions were introduced
during 1997 and it is submitted that the effect could be much wider,21
and could possibly include the supply of Internet services. Similar
provisions exist under European Union legislation, whereby telecommunication
services are deemed to be subject to tax in the country where the
recipient of the service belongs. In Europe the definition of telecommunications
is extremely wide and includes the supply of certain Internet services.
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One of the key
issues in determining whether an Internet Content Provider (ICP) has
physical presence in a particular jurisdiction and is therefore required
to register for VAT purposes in that jurisdiction, is whether the location
of a Web server creates a fixed establishment within the jurisdiction
where it is located. The creation of a permanent establishment usually
requires the presence of both technical and human means,22
the result being that the location of the server within a particular
jurisdiction does not create a permanent establishment. On the same
basis it is considered that an advertisement or hyperlink on a particular
web page or local independent agents (normally Internet service providers
or ISPs) offering Internet access or online services, would not create
a permanent establishment.
It
follows that whether an electronic commerce supplier, who is resident
or
carries on business outside the Republic, who supplies goods and services
to recipients in the Republic, is under an obligation to register as
a vendor in South Africa, is a question to which there is no definite
answer. In the absence of clear provisions, the SARS would therefore
have to provide clear guidelines in this regard.
It is, however,
submitted that a foreign ICP which does not have physical
presence in South Africa is not conducting an enterprise in South Africa
as envisaged in the VAT Act and is therefore not required to register
for South African VAT purposes.
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5.2
Taxability of Internet access services (i.e. supplies made by an ISP)
In
circumstances where the service is provided by an ISP situated within
South Africa to a recipient also situated in South Africa, the supply
would always be subject to VAT at the standard rate. Irrespective of whether
this supply constitutes a supply of telecommunication services, the ISP
would be conducting an enterprise within or at least partly within South
Africa. The effect is thus that VAT is levied in the jurisdiction where
the supply is consumed and enjoyed, i.e. in South Africa.
If
the ISP is situated outside South Africa and makes dial-up facilities
available to a user in South Africa, this supply would constitute an
imported service for VAT purposes, on the assumption that the ISP is
not required to register for South African VAT purposes. The recipient
would thus be liable to account for VAT to the SARS to the extent that
the service is not acquired for the purpose of making taxable supplies.
From a South African perspective an arrangement of this nature is unlikely,
as a local call to a local service provider would achieve the same type
of access to the Internet.
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An additional question
in this regard is whether the foreign ISP is providing telecommunication
services as envisaged in the South African VAT Act. These services are
not defined in the South African VAT Act, but on the assumption that it
constitutes a supply of telecommunication services, the ISP would be required
to register as a South African VAT vendor and charge VAT on the services
once these provisions are implemented.
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5.3
Taxability of supplies made by an Internet content provider (ICP)
For VAT purposes,
electronic commerce supplies can be examined in relation to three broad
categories of transactions.
At present the
vast majority of electronic commerce-based supplies fall into the first
two categories, and the supply of physical goods (business to business)
still predominates. Business consumer in this context means a South African
VAT registered vendor.
5.3.1
Supply of physical goods to both business and private consumers
In these cases,
the Internet is typically used as a means of communication to place orders,
akin to millions of mail-order catalogues represented by commercial web
sites for the placing and fulfilment of orders.
Existing VAT rules
are readily applicable to physical deliveries of goods purchased using
electronic means, whether the goods are despatched into South Africa or
supplied from inside it. As ordering goods through the Internet becomes
more common, it is likely that suppliers will take the order via their
local web site, but arrange for it to be fulfilled locally.
A distinction should
be drawn between the following two scenarios:
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In the instance
where the goods are supplied to a recipient within South Africa by a South
African supplier, that supplier would account for VAT in the normal way
according to existing rules. In the instance where the goods are despatched
into South Africa or alternatively acquired locally by a foreign supplier
(registered for South African VAT purposes), the foreign supplier would
either pay VAT to Customs and Excise on importation or to the local supplier.
The foreign supplier would claim the VAT as an input VAT deduction and
account for output VAT in the normal way when the goods are on-supplied
to the local customer.
In both instances,
the business consumer would be able to claim the VAT paid from the SARS
to the extent that the goods are acquired to make taxable supplies for
VAT purposes.
For the private
consumer, on the other hand, the VAT paid would constitute a permanent
cost.
In both instances
the effect is thus that the supply of physical goods is taxed in the jurisdiction
where the supply is consumed and enjoyed, i.e. in South Africa.
In circumstances
where the foreign supplier is not VAT registered in South Africa on the
basis that it does not continuously or regularly supply goods in South
Africa, the VAT incurred on acquisition from local suppliers would be
a cost to the foreign supplier while the VAT incurred on importation may
in certain instances be claimed by the supplier’s agent.23
The foreign supplier would not charge VAT to the recipient in South Africa.
In circumstances where the foreign supplier’s agent claims the VAT
on importation on the foreign supplier’s behalf, the agent is liable
to account for output VAT on the supply of the imported goods to the customer
in South Africa.
For customs duty
purposes, goods ordered electronically but delivered
physically from outside South Africa will continue to attract the rate
of duty appropriate to that commodity.
The main issue is
whether the import of the goods into South Africa can be
adequately controlled through the usual mechanisms of customs duty and
VAT clearance.
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Perhaps the main
problem concerns the exploitation, possibly in a systematic way, of the
postal importation thresholds that have been set in the context of ordinary
packages sent to individuals.
Schedule 1 to the
VAT Act contains a list of certain goods that are exempt from VAT on importation.24
Unlike other countries, which have generous postal importation thresholds,
it is not considered that this schedule needs review as a result of possible
exploitation. In respect of printed books, newspapers, journals and periodicals
imported by post the threshold amounts to R100 per parcel.
5.3.2
Supply from business to business of services
A distinction should
again be drawn between the following two scenarios:
Where the services
are supplied to a recipient within South Africa by a South African supplier
or foreign supplier (being South African VAT registered), the supplier
would account for VAT in the normal way according to existing rules. In
these circumstances the supplier would account for VAT in the normal way
when the services are on-supplied to the local customer. The business
consumer would be able to claim the VAT paid from the SARS to the extent
that the services are acquired to make taxable supplies for VAT purposes.
The effect is thus that the supply of the services is taxed in the jurisdiction
where the supply is consumed and enjoyed, i.e. in South Africa.
It is generally
accepted that in the case of business to business online services, the
most effective VAT accounting mechanism is represented by the “reverse
charge” provisions, which place the liability to account for VAT
on the business consumer within the jurisdiction of the revenue authority
in the place of consumption. In terms of these provisions the supplier
needs to determine the tax status of the recipient. Where the recipient
is a taxable person, the place of supply is where the recipient is established
and the recipient is liable to account for the VAT on his return. Where
the recipient is a non-taxable person, the place of supply is where
the supplier is situated and the supplier is liable to account for the
VAT.
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From a South African
perspective the imported services provisions, which are similar to the
reverse charge provisions and place the onus to account for VAT on the
recipient, will only apply in circumstances where the overseas supplier
is not VAT registered and the business consumer does not intend utilising
or consuming the particular services for the purposes of making taxable
supplies (e.g. for the exempt portion of his business). The underlying
nature of the consideration would be irrelevant and the effect would be
that the particular service is taxed in South Africa where it is consumed.
Although businesses are generally VAT compliant, the main drawback of
the imported services provisions in these circumstances is securing widespread
compliance.
Where the business
consumer intends utilising or consuming the particular
services for the purposes of making taxable supplies and would consequently
be entitled to claim an input VAT deduction in respect of the services
rendered by the non-resident, it follows that the business consumer would
thus not incur VAT and would not be liable to account for VAT.
For customs duty
purposes, the online delivery of digitised goods will be treated as
services because a tangible good is not supplied, and will therefore
be free of customs duty. It is considered that no additional import
duties will be introduced relating to electronic transmissions.
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5.3.3
Supply from business to private consumer of services
As is the case
with supplies to business consumers, the supply of services to a recipient
within South Africa by a South African supplier or foreign supplier (being
South African VAT registered), would be subject to VAT in the normal way
according to the existing rules, and the supplier would account for VAT
when the services are on-supplied to the local customer.
The
private consumer would, however, not be able to claim the VAT paid from
the SARS since the services are not acquired to make taxable supplies
for VAT purposes. The effect is thus that the supply of the services is
taxed in the jurisdiction where the supply is consumed and enjoyed, i.e.
in South Africa.
In circumstances
where the foreign supplier is not VAT registered, the private consumer
would, in terms of the imported services provisions, be liable to account
for VAT to SARS on the imported service. The effect would be that the
particular service is taxed in South Africa where it is consumed. Although
businesses are generally VAT compliant, the main drawback of the imported
services provisions in these circumstances is securing widespread compliance.
The South African
procedure of placing the burden on the non-taxable private consumer, however,
creates very serious concerns from a compliance perspective. There is
a very real risk that the amount of VAT due on these imported services
is not paid over to the SARS, which could impact dramatically on the South
African tax take. It also places an undue burden on individuals who are
obliged to comply with complicated legislation and need to report to their
local Revenue office each time a payment is made offshore and file VAT
forms for relatively small amounts.
This third category
of transactions therefore presents potentially the greatest tests for
effective tax administration, and no jurisdiction pretends to have the
answers. But it is also the least developed category, and so remains very
small at this stage.
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5.4
Taxability of electronic commerce supplies “exported” from South
Africa
Where
an ISP or ICP is registered for South African VAT purposes, South African
VAT will, subject to certain exemptions and exceptions, be charged on
all goods and services supplied by them in the course or furtherance of
their enterprise in South Africa.
The supply of any
movable goods that have been “exported” as envisaged by the
South African VAT Act, will be zero-rated for VAT purposes. Services physically
performed outside South Africa (as envisaged in section 11(2)(k)
of the VAT Act) or supplied to a non-resident who is outside South Africa
at the time the services are performed or supplied (as envisaged in section
11(2)(l) of the VAT Act) or services in relation to intellectual property
to the extent that the rights are for use outside South Africa (as envisaged
in section 11(2)(m) of the VAT Act), would inter alia qualify for zero-rating.
However, the onus
is on the vendor to obtain and retain sufficient proof substantiating
its entitlement to apply the zero rate, but the actual proof that is
necessary is not clearly defined, particularly in circumstances where
services are provided via e-mail or over the Internet. With regard to
physical goods, there will be no difference between sales made through
the Internet or supplied otherwise as the goods themselves will be mailed
or exported to an export country.
With fully digital
goods or services supplied online, obtaining proof and keeping records
may be more difficult for the supplier. The New Zealand IRD has issued
certain guidelines in this regard but has particularly indicated that
the use of the domain name (e.g. xxx.com or xxx.co.za) in an e-mail
address does not constitute adequate proof of the export of a service.
They have recommended the following steps to be taken to obtain the
necessary information:
In South Africa
no guidelines have been issued in this regard, and any supplier of services
to a foreign recipient would experience severe problems in maintaining
adequate proof in this regard.
In addition to obtaining
adequate proof of export, South African suppliers may find themselves
liable to account for VAT or similar taxes in any country where they
supply goods or services to final consumers on a continuous basis for
a consideration. This would place a massive compliance burden on the
South African supplier, including the requirement to recognise different
liability to consumption taxes in multiple markets. In practice, especially
for small companies used to filing tax returns in a limited number of
jurisdictions, the expense and difficulty of carrying the compliance
burden would be a significant deterrent.
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| 6.
Tax compliance and administration |
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The Internet is
a vehicle for world-wide sales where even the smallest electronic commerce
enterprise has the potential to achieve world-wide sales of products and
services. This entails world-wide tax compliance in an untold number of
foreign jurisdictions. For dishonest taxpayers the Internet is a new tax-free
haven where anonymous buyers and sellers, offshore web sites and untraceable
cash make tax evasion easy.
It is likely that
much non-compliance will stem from the application of rules that make
no sense in a virtual world and from the sheer inability to cope with
the multitudes of conflicting tax rules in various jurisdictions. Classic
SARS audit techniques will furthermore not be as effective in the virtual
world as they are in the real world.
The following are
just a few issues that will impact on tax compliance:
How South Africa
plans to enforce compliance is not clear. However, the government must
balance its need to ferret out non-compliance with the public’s need
for privacy.
The SARS issued
a media release25 announcing that it
would be conducting a survey on the electronic transmission of information.
According to the media release various services would become available
pending the outcome of the survey, which ran until 29 January 1999.
Such services include:
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On 15 April 1998
the Commissioner of SARS issued a ruling to the South African Institute
of Chartered Accountants that outlined SARS guidelines in respect of electronically
transmitted tax invoices and the correct implementation of EDI. In terms
of the ruling tax invoices, debit and credit notes may be exchanged electronically,
provided the necessary EDI control information is retained, and the supplier
and recipient are in possession of Letters of Authority from SARS.
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all the VAT rulings at
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| 7.
The way forward |
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By now the SARS
should be fully aware of the taxation issues presented by electronic commerce.
The question is when will these issues be addressed and changes made?
Electronic commerce transactions are happening now, and taxpayers do not
have certainty under existing laws on how to treat these transactions.
However, business would prefer a speedier resolution of such intractable
issues as digital products, and the effect of Web servers.
To provide some
certainty the government recently indicated that it will issue a discussion
paper on legal and regulatory guidelines to control electronic commerce.
More than 19 government departments and institutions are involved in the
drafting of the discussion paper. A White Paper and supporting legislation
is expected to be released by June 2000.
We certainly hope
that the rules are in place, and tested, before the onslaught of digitised
music and video sales reaches the Internet. How South Africa plans to
enforce compliance in this regard is unclear.
It is extremely
important that whatever solutions are reached with regard to the liability
of foreign suppliers to register for South African VAT purposes and
the places of supply, they not only safeguard revenues, but also meet
objectives that are critical to the healthy development of electronic
commerce, including maintaining a level playing field, keeping the compliance
burden to the absolute minimum and encouraging rather than stifling
trade.
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| Author
biographies |
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Charles de
Wet matriculated at Queen’s College in Queenstown in 1982.
Thereafter he completed BAcc at Stellenbosch University and obtained
BCompt (Hons) CTA and BCom (Hons) Taxation from UNISA and UCT respectively.
He is a qualified Chartered Accountant (SA), having completed articles
at Price Waterhouse. Subsequent to this he spent two years at the
South African Revenue Service where he served on the team which was
responsible for the implementation of VAT in South Africa in 1991.
Charles is currently a partner at PricewaterhouseCoopers, in the Western
Cape, responsible for Indirect Taxes. He has a particular interest
in e-business and is involved with providing solutions to clients
who are implementing their e-business strategies.
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Riana du
Plessis matriculated at Swartland High School in Malmesbury
in 1989, having grown up in Darling. She completed BAcc (Hons) at
the University of Stellenbosch and thereafter BCom (Hons) Taxation
at UCT. She is a qualified Chartered Accountant (SA), having completed
articles at Coopers & Lybrand. She is currently a manager in
the Tax and Legal Services division at PricewaterhouseCoopers where
she specialises in Indirect Taxes and specifically VAT.
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- Section
7(1) (Back)
- Section
1
- Section
1
- Paragraph
(b)(iv) of the definition of enterprise in section 1
- On
the Taxation Laws Amendment Bill, 1997 (Back)
- Section
11(2)(k)
- On
the Taxation Laws Amendment Bill, 1997
- Section
7(1)(c) read with section 14
- Definition
of resident of the Republic in section 1
- Proviso
to the definition of resident of the Republic in section 1 (Back)
- Section
7(2)
- Section
14(1) and 14(2)
- Section
14(3)
- Section
14(4)
- Section
14(5)(b) (Back)
- Section
11(2)(k)
- Section
11(2)(l)
- Section
11(2)(m)
- Section
11(3)
- Refer
Value-Added Tax, De Koker and Jenkinson, para 4.4.1 on 410
- Refer
VAT Commentary, De Koker published by Butterworths Publishers
(Pty) Ltd, 1994, Butterworths Electronic Publishing (Back)
- G
Berkhloz v Finanzamt Hamburg-Mitte-Altstadt, CJEC July 1985, [1985]
ECR 2251; ARO Lease BV v Inspecteur der Belastingdienst Grote Ondernemingen
Amsterdam, CJEC 17 July 1997, 1997 STI 1025
- Section
54(2A)(b) read with section 8(20)
- In
terms of section 13(3)
- Media
Release No 1 of 1999 on 5 January 1999 (Back)
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