Abstract
Value-added tax (VAT), was prior to its introduction in the South African legal system, a foreign concept.1 VAT was adopted into South Africa’s tax system after the consideration of New Zealand’s tax legislation,2 commonly known as the New Zealand Goods and Services Tax Act.3 Subsequently, it was known as the Sales Tax under the Sales Tax Act4 and was generally referred to as the General Sales Tax (GST). The GST was introduced in South Africa as taxation on goods and services.5 The Margo Commission, in 1987 put a proposal to introduce a comprehensive taxation on goods and services in their final report which would be a replacement to the GST.6 Following the proposal by the Margo Commission, the GST was changed to VAT in 1991 through the Value Added Tax Act7(the Act). This tax was introduced as an indirect taxation method on consumption except in instances where exemption or zero-rating was applicable...
LL.M. (Tax Law)