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VAT Update - 14 July 2010

SOUTH AFRICAN REVENUE SERVICE

BINDING PRIVATE RULING: BPR 017

DATE : 14 July 2008
ACT : VALUE-ADDED TAX ACT, 89 OF 1991 ("the VAT Act")
SECTION : SECTIONS 11(2)(l) and 72

SUBJECT : THE SUPPLY OF TROPHY, ACCOMMODATION AND SERVICES TO A PERSON WHO IS NOT A RESIDENT OF THE REPUBLIC

1. Summary
The issues considered in this ruling are whether the following supplies by an applicant to a foreign hunter will be subject to VAT:
• The supply of accommodation in the Republic.
• The supply of the trophy.
• The supply of services in respect of the removing and salting of the skin of the animal to prevent decay.

2. Relevant tax laws
This ruling is a binding private ruling which was requested by the Applicant in accordance with the requirements of section 76E of the Income Tax Act, No. 58 of 1962 (”the Act”) and issued by the Legal and Policy Division: Advance Rulings in accordance with section 41A of the VAT Act read with section 76Q of the Act.

All legislative references are to sections of the VAT Act applicable at 16 November 2007 and unless the context otherwise indicates, any word or expression in this ruling bears the meaning ascribed to them in the VAT Act.
The relevant provisions of the VAT Act are –
• section 11(2)(l); and
• section 72.

Read more: VAT Update - 14 July 2010

 

Darting Safaris

A. We received the following notification from the Department of Environmental Affairs last week.

The Veterinary Council proposed amendments to their legislation that will have an impact on the darting of rhinos by foreign clients. Herewith is a summary of the information:

1. According to the proposed amendments only veterinary professionals, or persons authorized by the Veterinary Council and under the supervision of a veterinary professional, will be permitted to administer Schedule 5 or 6 medicines with the purpose to tranquilize or anaesthetize an animal.

2. These amendments have not been published for implementation yet. However, the Veterinary Council will probably forward these proposals to the Department of Agriculture, Forestry and Fisheries (DAFF) next week, for DAFF to obtain approval from the Minister to publish the amendments in the Gazette for implementation. The implementation will then be with immediate effect.

3. The rules will be published in terms of Section 30 of the Veterinary and Para-Veterinary Professions Act, Act 19 of 1982. (Act)

Read more: Darting Safaris

 

Weird but True

July 29 – Weird but True:

A few of our members brought the following request they received via email under our attention. Over and above the blatant illegal practice suggested in the email, rhino horn can anyway not be sold and exported in terms of current Moratorium on trade in rhino horn. Even if the moratorium was not in place, Ireland would have had to issue an import permit. We forwarded the email to the Department of Environmental Affairs for their information as well.

“Hi, this is john Sullivan here from Ireland, I'm having a grand theme opening of an African seen here in my hotel in Kerry,Ireland.The thing is I’m having grate trouble in locating a real rhino head or horn in Ireland and a local taxidermy told me to email u on the off chance that u might be able to locate this item for me or refer some person or company or even auction that might have one for sale,it has to be the real item and not a fiberglass reproduction.(would ever consider a head or horn with out papers or documentation if it had to come to them circumstances)

It would be very much appreciated if u could get back to me with good news within a week or 2 as the grand opening will be on 4/9/2010 and we really need this item.

Kind regards john”

   

HuntEx 2011

Hunting enthusiasts decided to introduce HuntEx as an annual African Hunters Convention and Expo where hunters and the commercial hunting trade from all over the world can gather under one roof to discuss and view the latest products, services and hunting opportunities that the continent offers.

PHASA supports HuntEx and will also exhibit at the Expo over the period 15 – 17 April  2011.  Visit us at booth # 175.

HuntEx 2011, to be launched at Gallagher Estate in Midrand, Gauteng, South Africa on 15 – 17 April 2011, will set the scene for a regular annual African Hunters Convention and Expo. Gallagher Estate in Midrand is the most suitable venue for HuntEx2011 because of its excellent facilities and location.

For more information on HuntEx visit their website on www.huntex.net

 

Media Release - Beeld 6 July 2010

MEDIA RELEASE
Issued by the Professional Hunters’ Association of SA

This e-mail address is being protected from spambots. You need JavaScript enabled to view it / This e-mail address is being protected from spambots. You need JavaScript enabled to view it ; www.phasa.co.za
______________________________________________________________________
Pretoria – The president of the Professional Hunters’ Association of South Africa, Mr Eduard Katzke, expressed his dismay at articles in local newspapers about the report of Animal Rights Africa (ARA) entitled “Hunting in South Africa: A bloody mess”. The report was released earlier this week. The report allegedly finds that the R754 million hunting industry is often based on the exploitation of animals and that at least one million animals are hunted annually – mostly for their horns or fur or “simply for fun”. According to the newspaper articles Ms Michele Pickover, spokesperson for ARA, apparently said that ethics in the hunting industry are negligible.   
The perception that ARA is trying to create, namely that hunting is an unlimited form of destruction that will ultimately annihilate our wildlife, is completely unfounded. The use of the term “poaching” and hunting in the same context further proves how ignorant ARA is about the role of the hunting industry in conservation and wildlife management. The contribution of the the hunting industry to conservation, research and training of the previously disadvantaged should not be underestimated. This industry currently provides approximately 70 000 people with job opportunities, mainly in the rural areas. Over the past 3 years PHASA has generated more than R5 million for the training of the previously disadvantaged at the SA Wildlife College in Hoedspruit. In addition, approximately R400 000 has been made available to combat rhino poaching.

The direct financial contribution of hunting associations in South Africa to other conservation initiatives over the past year amounts to almost R3 million while more than R150 000 has been spent on research in the recent past.

Read more: Media Release - Beeld 6 July 2010

   

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