SARS zero rates VAT for EXSA members only? – Updated 20 March 2012

Excellent News for the “little” companies in the South African Exhibition and Trade Show Industry

This reply just on from SARS

A VAT Ruling is issued on the facts and circumstances of a specific vendor or class of vendors. Should your client(s) feel that the facts and circumstances are the same as those vendors referred to in a ruling, they are welcome to apply for a ruling.”

Rodney Govender Legal & Policy: Indirect Tax Policy Tel 012 422 5103  Fax 012 422 5043 email rgovender@sars.gov.za

So its now possible to apply even though one is not a member of EXSA. Though the reply does not state that we will be approved for such a ruling, its certainly a step in the right direction. I will update again once I have applied and can clarify the process to achieve this ruling.

Thanks to SARS for the fast reply

 

BR

Liam Beattie

 

Though not a new topic, this is sure to be more and more controversial as non EXSA members catch wind of this if they haven’t already.

“EXSA will be, as part of the condition of the Ruling, forwarding the details of all fully paid members of the Association, along with corresponding VAT numbers to SARS, and then subsequently every six months. The Ruling is applicable for a two-year period to August 2012”

The release is on EXSA’s Bizcommunity press release here in 2010…so only 5 months to go to see if SARS renews this ruling or not.

How can SARS exclude a far larger number of members of the exhibition and conference industry. Non EXSA members make up the majority of companies working in this industry (though maybe not actual people numbers). Though they happen to be the smaller companies that are not members. Most of the largest companies in the industry appear to be members. EXSA numbers possibly 200 (?) companies at best…A guess as I have not been able to locate current figures and had to manually count on their member list.

In my view this is an exclusionary and discriminatory law against those companies who choose not to be EXSA members.

Effectively SARS has made it mandatory to be an EXSA member. If we don’t join we will most likely lose our foreign clients as we cannot be competitive if we have to charge VAT. 14% can be a huge amount of a 500 ZAR pitch

Now seeking legal opinion…and first comments suggest SARS will be forced to allow all companies working in the industry the same privilege or cancel the privilege outright or remove the ruling altogether.

My accountant has just sent off a query to Mr Govender at SARS to seek clarity on this situation…I will update as responses come in

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