Retention payments and VAT
Monday, 04 June 2018
Posted by: Bert vd Heever
EduTech has received a number of queries regarding the recent change in the VAT rate.
We wish to refer you to our article published in mid-March entitled "A practical approach to the VAT rate increase to 15% on 1 April 2018"
In that article we stated that: "For projects where retention is applicable. The amount of retention held (excluding VAT) as at the 31st March 2018 must be accurately recorded. This amount will attract 14% VAT when released. All retention (excluding VAT) accumulated and held thereafter, will attract 15% VAT when released."
Some contractors have challenged this interpretation but it is one that KPMG confirms in a more recent article: South Africa: Retention payments and VAT.
|
|
Email to a Friend