what is the purpose of vat in south africa
Taxation in South Africa Taxation in South Africa may involve payments to a minimum of two different levels of government: central government through the South African Revenue Service (SARS) or to local government.[2] Central government revenues come primarily from income tax, value added tax (VAT), corporation tax and fuel duty. Local government revenues come primarily from grants from central government funds and municipal rates. In the 2012/2013 fiscal year SARS collected R813.8 billion (equivalent to US$ 73.1 billion)[3] in tax revenue, a figure R71.2 billion (or 9.6%) more than that from the previous fiscal year. In 2012/13 financial year South Africa had a tax-to-GDP ratio of 25.3% reflecing a marginal increase from 25% in 2011/12.
History of South Africa (1994–present) Following the election of 27 April 1994, Nelson Mandela was sworn in as President of South Africa. The Government of National Unity was established; its cabinet made up of twelve African National Congress representatives, six from the National Party, and three from the Inkatha Freedom Party. Thabo Mbeki and F.W. de Klerk were made deputy presidents. Economically, the government embarked on the Reconstruction and Development Programme (RDP) to address the socio-economic consequences of apartheid, including alleviating poverty and addressing the massive shortfalls in social services across the country - something that the government acknowledged would rely upon a stronger macroeconomic environment.[2]