Abstract
Client loyalty programmes are a common phenomenon in the South African market. Despite the fact that client loyalty programmes have been prevalent in South Africa since the 1980s, the South African Revenue Service has issued minimal guidance on the value-added tax treatment of client loyalty programme transactions. The main objective of the research was to determine whether South African client loyalty programme suppliers correctly account for client loyalty programme transactions for value-added tax purposes. In order to meet this objective, available local literature was analysed to determine the proposed value-added tax treatment of a client loyalty programme transaction. The proposed correct value-added tax treatment was compared with a survey circulated to a population of client loyalty programme suppliers in South Africa. The comparison indicated that in practice the Value-Added Tax Act 89 of 1991 is not always interpreted correctly. This incorrect tax treatment could result in financial loss to the client loyalty programme supplier as taxpayer
Highlights
Client loyalty programmes are a common phenomenon in the South African market
Indien die programeienaar ‘n belasting op toegevoegde waarde (BTW)-ondernemer is, sal BTW gehef word op die diens wat gelewer is as fasiliteerder van die kliëntelojaliteitsprogram, en hierdie uitsetbelasting wat ingesluit is in die vergoeding sal aan die Suid-Afrikaanse Inkomstediens (SAID) oorbetaal moet word
Paragraaf 6 van International Financial Reporting Interpretations Committee (IFRIC) 13 bepaal dat die gedeelte van die vergoeding wat aan die punte of myle toegeken in die onderliggende verkooptransaksie toegedeel word, gemeet kan word deur na die billike waarde te verwys
Summary
Die BTW-wet word nie altyd korrek geïnterpreteer en toegepas nie, wat tot gevolg het dat ‘n BTWondernemer insetbelasting of uitsetbelasting verkeerdelik kan verantwoord. Indien ‘n BTWondernemer verkeerdelik nie uitsetbelasting verantwoord nie, sal hy in werklikheid die betaling van belasting ontduik, wat op ‘n misdryf dui ingevolge artikel 59 van die BTW-wet. Artikel bepaal dat as ‘n persoon aan ‘n misdryf skuldig is ingevolge die BTW-wet, hy beboet sal word of gevangenisstraf van tot maande opgelê kan word. Indien ‘n BTW-ondernemer BTW ontduik, bepaal artikel 60 dat die SAID addisionele belasting van tot 200% kan hef op die BTW wat ontduik is. Onkunde is nie ‘n verweer nie en ingevolge artikel 59(2) van die BTW-wet word vermoed, totdat die teendeel bewys word, dat daardie persoon ‘n valse inskrywing met opset gedoen het om belasting te vermy
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