n Tax Breaks Newsletter - Payments to welfare organisations are zero-rated : value-added tax




The SA Red Cross Air Mercy Service Trust ('the Trust') approached the High Court for a declaratory order regarding the VAT status of payments that it receives from the health departments of provincial governments to provide air rescue services as and when required. In its judgement delivered on 6 May 2015, the High Court found in favour of the Trust that the payments qualify for VAT at the rate of zero per cent.


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