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The vat treatment of financial services linked to credit cards
Dissertation (MCom)--University of Pretoria, 2013.
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| Format: | Thesis |
| Language: | English |
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University of Pretoria
2014
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| _version_ | 1867613714986827776 |
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| access_status_str | Open Access |
| author2 | Van Oordt, Marius Louis |
| author_browse | Van Oordt, Marius Louis |
| author_facet | Van Oordt, Marius Louis |
| collection | Thesis |
| dc_rights_str_mv | © 2014 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria |
| description | Dissertation (MCom)--University of Pretoria, 2013. |
| format | Thesis |
| id | oai:repository.up.ac.za:2263/41454 |
| institution | University of Pretoria (South Africa) |
| language | English |
| last_indexed | 2026-06-10T12:40:32.922Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository |
| publishDate | 2014 |
| publishDateRange | 2014 |
| publishDateSort | 2014 |
| publisher | University of Pretoria |
| publisherStr | University of Pretoria |
| record_format | dspace |
| source_str | UPSpace — University of Pretoria Institutional Repository |
| spelling | oai:repository.up.ac.za:2263/41454 The vat treatment of financial services linked to credit cards Van Oordt, Marius Louis rrcoetzee@vodamail.co.za Coetzee, Riaan VAT Financial services Credit cards Exemptions Distortions Bundling UCTD Dissertation (MCom)--University of Pretoria, 2013. The treatment of financial services under the VAT has been one of the most contentious VAT issues since the origin of the VAT. Due to theoretical and measurement complexities, most countries opt to exempt financial services under the VAT. Exemption is the cause of all the controversy. Exempting supplies under the VAT compromises one of the corner-stones of the VAT – neutrality. South Africa is one of many countries that exempts most financial services under VAT. Credit card suppliers in South Africa offer a bundle of financial services comprising fee-based-charges and interest earned. The credit card user is usually only charged for the interest. Interest is an exempt supply under VAT. This gives rise to many distortions for South African credit card users and financial intermediaries. Exhaustive research has been conducted on the treatment of financial services under the VAT around the world. This study only focusses on the VAT treatment of interest margins of credit cards in South Africa. Firstly, it was determined that credit card offerings in South Africa include bundled offerings which is impractical to separate on a transaction-for-for transaction-basis due to valuation complexities and market conditions. Secondly, it was determined that VAT doesn’t play a major role in credit card suppliers’ decision on how offerings are structured. It is mostly guided by the competition and legislation. Thirdly, it was determined that administrative burden and compliance cost caused by apportionment in South Africa is highly underplayed in the literature. Lastly, it was proposed that full taxation of all financial services with implicit charges at a lower rate or full taxation of fee-based charges with exemption of financial services with a partial input recovery, to be the best alternatives for South Africa to consider to tax financial services under VAT. am2014 Taxation unrestricted 2014-08-20T09:12:35Z 2014-08-20T09:12:35Z 2014-04-01 2013 Mini Dissertation Coetzee, R 2014, The vat treatment of financial services linked to credit cards, MCom dissertation, University of Pretoria, Pretoria, viewed yymmdd <http://hdl.handle.net/2263/41454> F/14/4/454 http://hdl.handle.net/2263/41454 en © 2014 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria application/pdf University of Pretoria |
| spellingShingle | VAT Financial services Credit cards Exemptions Distortions Bundling UCTD The vat treatment of financial services linked to credit cards |
| title | The vat treatment of financial services linked to credit cards |
| title_full | The vat treatment of financial services linked to credit cards |
| title_fullStr | The vat treatment of financial services linked to credit cards |
| title_full_unstemmed | The vat treatment of financial services linked to credit cards |
| title_short | The vat treatment of financial services linked to credit cards |
| title_sort | vat treatment of financial services linked to credit cards |
| topic | VAT Financial services Credit cards Exemptions Distortions Bundling UCTD |
| url | http://hdl.handle.net/2263/41454 |