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

Simple item page
dc.contributor.advisorRoeleveld, Jenniferen_ZA
dc.contributor.authorRitchie, Monique Adrienneen_ZA
dc.date.accessioned2015-12-09T14:47:55Z
dc.date.available2015-12-09T14:47:55Z
dc.date.issued2015en_ZA
dc.description.abstractApportionment 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.identifier.apacitationRitchie, 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/11427/15746en_ZA
dc.identifier.chicagocitationRitchie, 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/11427/15746en_ZA
dc.identifier.citationRitchie, 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.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
dc.identifier.urihttp://hdl.handle.net/11427/15746
dc.identifier.vancouvercitationRitchie 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/11427/15746en_ZA
dc.language.isoengen_ZA
dc.publisher.departmentDepartment of Finance and Taxen_ZA
dc.publisher.facultyFaculty of Commerceen_ZA
dc.publisher.institutionUniversity of Cape Town
dc.subject.otherTaxationen_ZA
dc.titleInternational apportionment mechanisms for VAT inputs - Is the turnover basis the best mechanism for all retail industries in South Africa?en_ZA
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationnameMComen_ZA
uct.type.filetypeText
uct.type.filetypeImage
uct.type.publicationResearchen_ZA
uct.type.resourceThesisen_ZA
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
thesis_com_2015_ritchie_monique_adrienne 1.pdf
Size:
974.7 KB
Format:
Adobe Portable Document Format
Description:
Download
Collections
Masters