what is the purpose of vat in south africa
Taxation in South Africa Taxation in South Africa may involve payments to a minimum of two different levels of government: central government through the South African Revenue Service (SARS) or to local government.[2] Central government revenues come primarily from income tax, value added tax (VAT), corporation tax and fuel duty. Local government revenues come primarily from grants from central government funds and municipal rates. In the 2012/2013 fiscal year SARS collected R813.8 billion (equivalent to US$ 73.1 billion)[3] in tax revenue, a figure R71.2 billion (or 9.6%) more than that from the previous fiscal year. In 2012/13 financial year South Africa had a tax-to-GDP ratio of 25.3% reflecing a marginal increase from 25% in 2011/12.