Abstract
The current South African Value-Added Tax (VAT) Act lacks logical structure and is therefore complex to teach, apply in practice and administer. The study on which this article reports investigated the structure of the VAT Act as an element of legal complexity. The goal of the study was to provide guidelines for a simplified VAT Act. The research was conducted in two phases: a literature review, followed by semi-structured interviews. Existing empirical studies confirm that the poor structure, layout and organisation of the VAT Act contribute to its complexity. In addition, research confirms that improvements to structure, layout and organisation enhance the readability of statutes. Interviewees agreed that the current incoherent structure of the VAT Act contributes to its complexity. The findings confirm that complexity of the VAT Act raises compliance and administrative costs. The literature review and interview findings contribute to the development of guidelines for a simplified South African VAT Act, which is the contribution of this study. The principles include adhering to a VAT vendor’s lifecycle, grouping sections together, introducing headings and subheadings, using clear signposting, employing international benchmarks and seeking a solution that addresses local challenges most effectively. The guidelines also suggest that the guidelines are utilised to develop an index. One recommendation that stands out is to completely rewrite the VAT Act. As a first step in this rewrite project, it is recommended that an index be developed using the guidelines. This is an initial step towards simplification of the South African VAT Act.