Banking and finance law is a highly sought after area

Law is a highly sought-after area of law with financial sectors worldwide

A standard-rated supply is a supply of goods or services, which is subject to VAT at the rate of 14%. The supply of all goods and services are taxable at the standard rate, unless it is specifically zero-rated in terms of section 11, or exempt in terms of section 12 of the VAT Act.

Client:

Robert Downey, Jr.

Case Category:

Banking and Finance

Time Frame:

60 Days

Status:

Fixed

The following are some examples of standard-rated supplies (the list is not exhaustive):

  • Land and buildings (fixed property) – commercial or residential property bought from property developers, building materials, vacant land bought from a vendor etc.
  • Fees for professional services – construction/building, estate agents, consultants, architects, engineers, project managers, doctors, private hospital services, lawyers, plumbers, electricians and accountants.
  • Household consumables and durable goods – most grocery items and foodstuffs such as meat, fish, white bread, snacks, most canned foods, cigarettes, perfume, medicines, cool drinks, cleaning materials, clothing, footwear, microwave ovens and other household consumables and appliances.
  • Municipal goods and services such as the supply of electricity, water and refuse removal.
  • Accommodation, hospitality, tourism and entertainment – restaurant meals, hotel accommodation, liquor sales, arcade amusements, casino slot machines and gambling services, entrance fees to sporting events, theatre performances and film shows, guided tours, game drives and game hunting expeditions.
  • Capital assets such as furniture, production machinery, installations, motor vehicles and equipment.
  • Local transport of goods (all modes of transport) and transport of passengers by air or sea.
  • Telephone, internet, computer and other telecommunication services.
  • Rental of goods and commercial property such as office space.

Motor vehicles, repair services, lubrication oils, and spare parts.

When a standard-rated supply is made, VAT (output VAT) must be charged at the prescribed rate (currently 14%) and input VAT may be deducted on, any goods or services acquired in the course of making those taxable supplies. The net VAT due by a vendor is calculated by subtracting the input VAT incurred from the output VAT charged during the VAT period.