- Attorney disbursements may be exempt from VAT.
- Section 54 of the VAT Act applies to this situation.
- Disbursements refer to expenses and supplies paid for by the supplier on behalf of the customer.
- The VAT incurred on these supplies can be deducted as input tax by the customer.
- The third-party supplier should issue a tax invoice directly to the customer or to the supplier acting as an agent.
- When disbursements are indicated on an invoice, no VAT should be charged as it has already been charged separately by the third-party supplier.
Source: taxfaculty.ac.za
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
