Summary of VAT Act 89 of 1991 South Africa

The VAT Act 89 of 1001 is an extremely lengthy and complicated document that includes a lot of technical jargon. Reading it and let alone understanding it’s a little over the board for a non-professional. However, staying updated with the relevant VAT acts and amendments is a necessity if you are running a business in South Africa.

So, for your ease, I am about to quickly summarize what is included in this act. This quick summary will give you a gist of what is to be included in this act so that you can have an idea of what you are reading when you do give it a read. So, for further details, keep on reading down below.

VAT Act 89 Of 1991

The VAT Act 89 of 1991 is a very comprehensive guide on Value Added Tax in various instances. It is the best source that tells you how to calculate Value Added Tax in the proper way. Here’s a quick summary of the act for you down below.

1. Taxation On The Supply Of Goods And Services

The VAT Act 89 of 1991 tells exactly how to calculate tax on the supply of goods and services. There are certain percentages that should be applied in business transactions. These percentages are different for the manufacturers, distributors, and wholesalers.

Furthermore, the supply of services has its own tax complications and separate tax rates and rules. But everything is detailed in the act. So, all you have to do is refer to the act to see how to properly calculate VAT on the supply of goods and services.

2. Amendment To Transfer Duty Act

A slight amendment to the Transfer Duty Act is also included in the 1991 VAT Act 89. It means that before buying, selling, or transferring property or land, you would have to check out the VAT law amendment in this act in order to ensure compliance with tax laws.

3. Amendment To Stamp Duty Act

In the 1991 VAT Act 89, a few alterations to the Stamp Duty Act are also included. These alterations mainly include exemption from stamp duty and discontinuation of certain stamp duty levies. So, make sure you check it out at the risk of overpaying VAT.

The Bottom Line

So, it is safe to say that the VAT Act 89 of 1991 includes proper VAT calculation guidelines for the sale and purchase of goods and services. In addition to that, it also includes a few amendments to the Transfer Duty Act and the Stamp Duty Act.