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									                       Refund of value-added tax                                    These expenses include hotel accommodation of employees, travelling costs
                                                                                    and operational costs of the qualifying entity.
                   2010 FIFA World Cup South Africa                                 What is the Championship?
What is VAT?                                                                        The Championship means all matches and ceremonies of the 2009 FIFA
                                                                                    Confederations Cup and the 2010 FIFA World Cup and such other directly
VAT is the abbreviation for the term value-added tax. It is an indirect tax based   related official events, including draws, galas, conferences and cultural events,
on consumption. Revenue is raised for the government by requiring certain           as may be agreed in good faith between FIFA and the Commissioner for
traders (vendors) to register and to charge VAT on taxable supplies of goods        SARS.
or services. Vendors act as the agent of the government in collecting the VAT
charged on taxable transactions. The South African Revenue Service (SARS)           Who qualifies for a refund of VAT?
is a government agency which administers the VAT Act and ensures that the
tax law is properly enforced and that the tax is collected.                         The following entities qualify for a refund of VAT in respect of any activity
                                                                                    carried on which relates to the Championship:
How does VAT work?
                                                                                    • The Fédération Internationale de Football Association (FIFA).
                                                                                    • A FIFA Subsidiary which is an entity that is wholly owned and controlled by
The South African VAT is destination based, which means that only the
consumption of goods and services in South Africa is taxed. VAT is therefore
charged on the supply, by a vendor, of goods or services in South Africa as         • Any Participating National Association being a National Association
well as on the importation of goods into South Africa. VAT is presently levied         affiliated to FIFA, qualified to enter a team in the final tournament of the
at the standard rate of 14% on most supplies and importations, but there is a          Championship and any representative of the National Association excluding
limited range of goods and services which are either exempt, or which are              any member of the team and South African Football Association (SAFA).
subject to tax at the zero rate (for example, exports are taxed at 0%).
                                                                                    For ease of reference, these entities shall be referred to as a Part 2 Entity.
The importation of services is only subject to VAT where the importer is not a
vendor, or where the services are imported for private or exempt purposes.          What is the procedure to obtain a refund of VAT?
Certain imports of goods or services are exempt from VAT.
                                                                                    In order to obtain a VAT refund, a Part 2 Entity is required to register with
On what is VAT levied?                                                              SARS by completing a VAT101FIFA form. Once this registration is complete, a
                                                                                    Part 2 Entity will be required to register as an e-filer in order to submit VAT 201
VAT is levied on the taxable supply of goods or services by vendors. VAT is         returns electronically (via eFiling) on a two-monthly basis. The website
charged either at the rate of 14% or 0%.                                            address for efiling is or it can be accessed through
                                                                                    the SARS website .
How will you know if you have been charged VAT?
                                                                                    What is e-Filing?
A vendor making a taxable supply of goods or services must issue a tax
                                                                                    e-Filing is a secure electronic tax return and submission service offered by
invoice to the recipient in all instances when the total value of the supply
                                                                                    SARS that removes the risks and hassles of manual tax returns. It is required
including VAT exceeds R50. The tax invoice will either reflect the amount of
                                                                                    that returns be submitted via the Internet. No special software is required to
VAT charged or state that the amount includes VAT at 14% or 0%.
                                                                                    submit VAT 201 monthly returns electronically; only an internet connection and
On what expenditure can you get a refund of VAT?                                    a standard Windows operating system installed on a personal computer is
                                                                                    required. Once the electronic registration is complete and authorised by
                                                                                    SARS, a confirmation notice is sent to the applicant confirming the registration
The refund of VAT is only applicable to expenses on which 14% VAT was paid
and the expenses are related directly in connection with the Championship.          as an e-filer.
                                                                                    of any rectification or information requested, the 21-day period will be activated
For more information regarding efiling, log onto                 again.

How often and when must VAT returns be submitted?                                   Interest will not be paid on any VAT refund which is made after 21 business
                                                                                    days from the date of submission of the VAT 201 return to a Part 2 Entity for
A Part 2 Entity must complete the VAT 201 return for each applicable tax            whatever reason.
period (i.e. two-monthly tax period) and separately indicate respectively –
• in field 14 the VAT paid on capital expenses in field, and                        A nil return is required even when no claims are processed or output tax is
• in field 15 the VAT paid on operating expenses (e.g. hotel accommodation          payable for a specific month. Failure to submit returns will affect the payment
    and meals of players).                                                          of future claims for a refund of VAT.

The VAT 201 return must be submitted within the period ending on the last           Any expenses allowed, may only be claimed once. Should a claim be
business day of the month during which the 25 day falls.                            duplicated, in error, the tax must be refunded to SARS immediately upon
                                                                                    detection of such an error. This can be done by making an adjustment of such
When do you claim a refund of VAT on a qualifying expense?                          amount in field 18 of the VAT 201 return submitted after the error is
                                                                                    discovered. It is an offence to claim the same expense more than once.
A Part 2 Entity must claim VAT on the payments basis. This means that VAT
incurred on any transaction can only be claimed when the transaction in             No additional claims may be added to a VAT 201 return that has already been
question has been paid for by the Part 2 Entity.                                    lodged via efiling for a specific period. Claims not included in the return for that
                                                                                    specific tax period, may be added in a subsequent VAT 201 return, including
What documents do you need to keep in order to substantiate your                    expenses where proof of payment is received at a later date.
                                                                                    A VAT claim for a specific expense that is rejected for whatever reason, can
A Part 2 Entity must obtain tax invoices from the supplier of all goods or          only be included in a subsequent VAT 201 return, accompanied by a full
services acquired directly in connection with the Championship.                     explanation and whatever information is requested to either substantiate the
                                                                                    claim, or correction made by the supplying vendor, whichever is applicable.
A Part 2 Entity must ensure that it receives a tax invoice that is compliant with   This explanation must be submitted to Customs – 2010 FIFA World Cup South
the VAT Act. If any details are omitted or incorrect on the tax invoice, only the   Africa    and either hand delivered or posted to Lehae La SARS,
vendor, who issued such tax invoice, may amend the tax invoice. For example,        299 Bronkhorst Street, Nieuw Muckleneuk, Pretoria, 0181.
to add or change the recipient’s name, invoice heading, description, quantity,
value, VAT etc.                                                                     Any claim for a refund will only be paid by the Commissioner where the Part 2
                                                                                    Entity has provided the Commissioner with the details of its South African bank
A Part 2 Entity is required to obtain and retain the original documentation (e.g.   account or the South African bank account details of one of its subsidiaries or
tax invoices and proof of payment) before submitting a VAT 201 return. These        the bank account details of FIFA.
documents must not be submitted to SARS, but must be retained for five years
by a Part 2 Entity and be made available to SARS on request.

What are the limitations imposed by SARS on VAT refunds?

The Commissioner for SARS is committed to approve and refund VAT within
21 business days of receipt of any claim, whether processed electronically or
manually, unless the claim is incomplete or defective in any material respect,
or insufficient information is received by the Commissioner to enable him to
make an assessment reflecting the amount properly refundable. Upon receipt

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