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Digital and Analytics
We have developed distinctive capabilities in digital advisory and data analytics that are key to the success of dynamic organisations.
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Business Consulting
Our business consulting services help organisations improve operational performance and productivity throughout the growth life cycle.
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Corporate Finance & Restructuring
We combine our insights and experience to provide a comprehensive range of advisory and corporate finance and restructuring solutions.
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Internal Audit
Our internal audit service is designed to provide both assurance and consulting assistance on the adequacy and effectiveness of an organisation’s system of internal controls.
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Business Risk Services
Our service is focused on enabling broader risk coverage and proactive management of risks for the achievement of organisational strategy.
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Business Process Solutions
We work with a multitude of organizations to improve their finance function efficiency, reduce costs associated with business processes and provide a complete solution to the challenge faced by South African organizations.
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Programme Assurance & Advisory
Our aim is to protect shareholder value by providing Assurance and Advisory services on change portfolios and large-scale programmes to assist organisations.
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Forensic Services
Our forensic capability is integrated with our wider advisory services – not an add-on.
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Cyber Advisory
Our Cyber Advisory service is designed to help you identify, protect, detect, respond and recover from cyber-attacks.
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IT Advisory Services
We help clients to navigate the complexities and provide you with robust independent assurance that your IT risks, key management priorities and core systems are being appropriately managed.
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SNG ARGEN
We have a dynamic actuarial team set to assist businesses to comply with the audit standards where actuarial services are required.
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General Audit
We provide a sound statutory audit of financial statements specialising in both listed entities and state-owned organisations.
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Financial Services Group (FSG)
The Financial Services Group (FSG) offers specialised audit and advisory solutions to the banking, treasury and financial services sectors.
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Technical Excellence
We have a well-established specialized technical division, with in-depth, local and international knowledge and experience, which consists of three units namely; Accounting, Audit and Sustainability reporting.
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Corporate Tax
We offer your business access to a global network of tax specialists in over 130 countries with extensive corporate tax technical skills to provide meaningful advice and adding value to your organization.
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Value-Added Tax
We can manage your overall exposure to indirect taxes, guide you through complex South African Value-Added Tax (VAT) legislation.
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Global Mobility
Taxes can be complicated, but the SNG Grant Thornton approach is to assist the new assignee with a clear and easy process.
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Customs and Excise Tax
Our Customs and Excise team assist traders with driving cost-effective supply chains while maintaining legitimate trade.
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Tax Technology
This is the lynchpin of our tax audit and advisory approach in making the tax function of our clients effective in data management tools.
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International Tax & Transfer Pricing
Our team is ideally suited to serve large multinationals and other global companies that need on the ground expertise in multiple jurisdictions, given our extensive network of offices around the globe.
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Specific Focus Areas
We have a team of dedicated tax specialists with deep knowledge to bring practical and cost-effective tax solutions to our clients and assist entities operating within these sectors to effectively manage their tax needs.
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Business Consulting
We provide fit-for-purpose solutions to address major challenges the Education sector faces by supporting our clients.
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Employees’ Tax Services
Its important to ensure that the institution complies with the tax legislation and that all payroll records are accurate and complete.
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Programme Assurance & Advisory
The need for sound project management and effective solution delivery gives you the edge in competitive markets.
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Forensic Services
Fraud detection review and forensic investigation for Higher Education
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Digital and Analytics
The digitalisation of processes within the higher education sector leads to increased data generation. This data can be an essential asset when leveraged correctly.
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Cyber Security Services
There is no one-size-fits-all security solution to preventing all attacks, but we have cybersecurity strategies that education institutions can use to minimise cyber threats.
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Sustainable Development Goals (SGDs)
SDG Impact Standards Training Course
The article provides insights into the recent inclusion of welfare organizations in the definition of "enterprise" for Value Added Tax (VAT) purposes. This significant change allows welfare organizations to register for VAT, even if they do not engage in taxable supplies. The primary objective is to recognize and appreciate the valuable contribution of welfare organizations in promoting initiatives for the public good. By registering for VAT, these organizations can reclaim input tax on goods or services acquired for their activities.
Funding from the private sector
Welfare organizations typically receive funding from diverse sources, including public authorities and the private sector. When it comes to funding from the private sector, it becomes crucial to evaluate if the funding qualifies as a "donation" for VAT purposes. When funding meets the criteria of a "donation," it is not subject to VAT since it is not considered as a consideration. However, if the funding fails to meet the definition of a "donation," it may be liable for VAT at the standard rate of 15%.
Donation for VAT purposes
To be considered a donation for VAT purposes, the VAT Act stipulates that the donor must not receive any direct identifiable benefit in the form of goods or services. If any benefit that can be perceived as reciprocation is received by the donor, the funding would be considered as consideration for the goods or services provided.
Often the contracts governing the funding received contain clauses which suggest that the recipient, i.e. welfare organization is required to perform some marketing or promotional services, which in certain instances are practically not performed.
However, for VAT purposes, the contract could suggest that the payment does not qualify as a
donation as a result of certain obligations (e.g. marketing and promotional services) imposed on the recipient of the funding with the result that the payment could be subject to VAT at the standard rate of 15%.
VAT treatment for funding
It is therefore important that the parties consider the impact of certain clauses, which are likely to impact the VAT treatment of the funding received. Further, where such funding is subject to VAT at the standard rate of 15%, it is often the welfare organisation that has to fund the 15% VAT from its pocket as most of the contracts would provide that where VAT is applicable, it would be the responsibility of the recipient of the donation. Consequently, the full funding received would be deemed to be inclusive of VAT. If you are a welfare organisation and require advice on the VAT treatment of funding received from various sources and VAT treatment of the expenses incurred which are directly attributable to donations received, please contact us.