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 The Dutch East India Company (in the Dutch of the day: Vereenigde Oostindische Compagnie, or VOC) decided to establish a permanent settlement at the Cape. The VOC, one of the major European trading houses sailing the spice route to the East, had no intention of colonising the area, instead wanting only to establish a secure base camp where passing ships could shelter and be serviced,[16] and where hungry sailors could stock up on fresh supplies of meat, fruit, and vegetables. To this end, a small VOC expedition under the command of Jan van Riebeeck reached Table Bay on 6 April 1652.[19]