This practical course unpacks SARS VAT Ruling 014, focusing on approved apportionment methods in the retail industry. It explains when and how the page-space and varied turnover-based methods may be applied, helping vendors correctly apportion input tax on mixed expenses and reduce VAT risk.
The course analyses VAT Ruling VR 014 in detail, explaining the legal basis under sections 16 and 17(1) of the VAT Act and how SARS evaluates apportionment methodologies. Using a retail case study, it demonstrates the practical application of the page-space method for marketing costs and the varied turnover-based method for operational and administrative expenses. Emphasis is placed on classification of income streams, cost centres and documentation required to support the chosen method.
Key Topics Covered
• Overview of VAT apportionment and mixed supplies
• Understanding SARS VAT Ruling VR 014
• Page-space method: principles and calculations
• Varied turnover-based method and income stream treatment
• Treatment of exempt supplies, interest and debtors’ book sales
• Common apportionment errors and audit risks.
• Retail finance managers and financial controllers
• VAT specialists and tax practitioners
• Accountants and auditors advising retail vendors
• Compliance officers responsible for VAT reporting and risk management
• External Auditors
