International apportionment mechanisms for VAT inputs - Is the turnover basis the best mechanism for all retail industries in South Africa?

 

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dc.contributor.advisor Roeleveld, Jennifer en_ZA
dc.contributor.author Ritchie, Monique Adrienne en_ZA
dc.date.accessioned 2015-12-09T14:47:55Z
dc.date.available 2015-12-09T14:47:55Z
dc.date.issued 2015 en_ZA
dc.identifier.citation Ritchie, M. 2015. International apportionment mechanisms for VAT inputs - Is the turnover basis the best mechanism for all retail industries in South Africa?. University of Cape Town. en_ZA
dc.identifier.uri http://hdl.handle.net/11427/15746
dc.description.abstract Apportionment of input VAT and the mechanisms used to calculate apportionment have been a challenging issue since the inception of the Value-Added Tax Act No. 89 of 1991 in South Africa. This requirement to apportion input VAT has particular relevance to the retail industry due to the increase in the extension of credit which results in the receipt of taxable supplies (ordinary sales) and exempt supplies (interest income). As retailers are therefore making mixed supplies, they are required to apportion the input VAT paid on expenses. At present the standard method for input VAT apportionment in South Africa is the turnover basis however this method is not perceived as equitable by credit retailers. After an in-depth analysis of the retail industry in South Africa, its relevance to the South African economy and the impact of the requirement to apportion input VAT using the turnover method on listed companies within the South African retail industry, this paper analyses the treatment of VAT apportionment by the South African Revenue Service within the context of the Value-Added Tax Act No. 89 of 1991 and relevant South African case law. Recommendations for South Africa are then sought by studying the mechanisms for input VAT apportionment used in countries with VAT systems similar to that of South Africa. Included in this study are those countries which employ traditional VAT systems such as European Union member states and Mexico; and those countries which have implemented modern VAT systems such as New Zealand, Singapore, Australia and Canada. In addition, alternative approaches to address the root cause of the requirement to apportion input VAT used internationally are researched to the extent that these mechanisms have application to the retail industry in South Africa. en_ZA
dc.language.iso eng en_ZA
dc.subject.other Taxation en_ZA
dc.title International apportionment mechanisms for VAT inputs - Is the turnover basis the best mechanism for all retail industries in South Africa? en_ZA
dc.type Master Thesis
uct.type.publication Research en_ZA
uct.type.resource Thesis en_ZA
dc.publisher.institution University of Cape Town
dc.publisher.faculty Faculty of Commerce en_ZA
dc.publisher.department Department of Finance and Tax en_ZA
dc.type.qualificationlevel Masters
dc.type.qualificationname MCom en_ZA
uct.type.filetype Text
uct.type.filetype Image
dc.identifier.apacitation Ritchie, M. A. (2015). <i>International apportionment mechanisms for VAT inputs - Is the turnover basis the best mechanism for all retail industries in South Africa?</i>. (Thesis). University of Cape Town ,Faculty of Commerce ,Department of Finance and Tax. Retrieved from http://hdl.handle.net/11427/15746 en_ZA
dc.identifier.chicagocitation Ritchie, Monique Adrienne. <i>"International apportionment mechanisms for VAT inputs - Is the turnover basis the best mechanism for all retail industries in South Africa?."</i> Thesis., University of Cape Town ,Faculty of Commerce ,Department of Finance and Tax, 2015. http://hdl.handle.net/11427/15746 en_ZA
dc.identifier.vancouvercitation Ritchie MA. International apportionment mechanisms for VAT inputs - Is the turnover basis the best mechanism for all retail industries in South Africa?. [Thesis]. University of Cape Town ,Faculty of Commerce ,Department of Finance and Tax, 2015 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/15746 en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Ritchie, Monique Adrienne AB - Apportionment of input VAT and the mechanisms used to calculate apportionment have been a challenging issue since the inception of the Value-Added Tax Act No. 89 of 1991 in South Africa. This requirement to apportion input VAT has particular relevance to the retail industry due to the increase in the extension of credit which results in the receipt of taxable supplies (ordinary sales) and exempt supplies (interest income). As retailers are therefore making mixed supplies, they are required to apportion the input VAT paid on expenses. At present the standard method for input VAT apportionment in South Africa is the turnover basis however this method is not perceived as equitable by credit retailers. After an in-depth analysis of the retail industry in South Africa, its relevance to the South African economy and the impact of the requirement to apportion input VAT using the turnover method on listed companies within the South African retail industry, this paper analyses the treatment of VAT apportionment by the South African Revenue Service within the context of the Value-Added Tax Act No. 89 of 1991 and relevant South African case law. Recommendations for South Africa are then sought by studying the mechanisms for input VAT apportionment used in countries with VAT systems similar to that of South Africa. Included in this study are those countries which employ traditional VAT systems such as European Union member states and Mexico; and those countries which have implemented modern VAT systems such as New Zealand, Singapore, Australia and Canada. In addition, alternative approaches to address the root cause of the requirement to apportion input VAT used internationally are researched to the extent that these mechanisms have application to the retail industry in South Africa. DA - 2015 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 2015 T1 - International apportionment mechanisms for VAT inputs - Is the turnover basis the best mechanism for all retail industries in South Africa? TI - International apportionment mechanisms for VAT inputs - Is the turnover basis the best mechanism for all retail industries in South Africa? UR - http://hdl.handle.net/11427/15746 ER - en_ZA


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