South Africa Tax Agency Clarifies Liability for Skills Development Levies, VAT for Payroll Administration Services

The South African Revenue Service Sept. 3 posted online the High Court Judgment for Case No. CA 118/2024, clarifying the liability for skills development levies (SDL) and VAT for payroll administration services. The taxpayer, a service provider to mid-market retail businesses, provided payroll administration services to its clients in respect of the clients’ employees, the disputed personnel. The Tax Agency contended that the personnel were the taxpayer’s employees and conducted an audit regarding VAT and payroll taxes, including SDL, resulting in additional SDL and VAT assessments. The Tax Court held that the taxpayer wasn’t the employer of the disputed personnel ...