VAT exemption for welfare services – guidelines

The Office of the CfR has issued guidelines on the VAT exemption in terms of item 11(4) of Part 2 to the Fifth Schedule of the VAT Act, which applies to welfare services supplied by a Government Institution or an institution/organisation recognised as a non-profit making organisation.

The guidelines clarify that

• a government institution means an entity which is part of a “public authority” as defined in article 2 of the VAT Act; and
• an institution/organisation recognised as a non-profit making organisation means an institution/organisation as defined in item 5 of Part 5 of the Fifth Schedule to the VAT Act.

A copy of the guidelines can be downloaded from this link.