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.
Constitution of South Africa The Constitution of South Africa is the supreme law of the Republic of South Africa. It provides the legal foundation for the existence of the republic, sets out the rights and duties of its citizens, and defines the structure of the government. The current constitution, the country's fifth, was drawn up by the Parliament elected in 1994 in the South African general election, 1994. It was promulgated by President Nelson Mandela on 18th December 1996 and came into effect on 4 February 1997, replacing the Interim Constitution of 1993.[1]