VAT Question

blunomore

blunomore

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Would a board attendance fee be considered as an honorarium? Would VAT be levied on it or not?

Thanks
 
Interesting question!

The attendee delivers the service, so his/her status matters, not the company's. It is unlikely (not impossible) that the individual is registered for VAT. If not registered, then there is no VAT involved.

If registered, I don't think it will be a vatable service. So I would hazard a guess that no VAT is involved.

I haven't been involved in VAT/accounting for some time so don't construe anything I say as advice :)
 
iris99 said:
Interesting question!

The attendee delivers the service, so his/her status matters, not the company's. It is unlikely (not impossible) that the individual is registered for VAT. If not registered, then there is no VAT involved.

If registered, I don't think it will be a vatable service. So I would hazard a guess that no VAT is involved.

I haven't been involved in VAT/accounting for some time so don't construe anything I say as advice :)
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In this case, the individual is indeed registered for VAT, hence my Q.

I always thought an attendance fee would not include VAT ......... :confused:
 
In what capacity did *you* attend? As a non-executive director? Independantly to offer advice on a service you offer (for which you are registered as a vAT vendor?
 
Then I would suggest it is like a salary (can't remember the correct word now - "vergoeding" or "besoldiging" in the Income Tax Act).

On the assumption that annualised it is less than the tax threshold no PAYE is deducted and you will probably be issued with an IT3 at the end of the year.

Still not vatable I reckon.
 
I would guess it falls under remuneration. i seem to remember from personal income tax returns that under gross remuneration there is a section for director's fees. It would seem to me that payment for attending board meetings would fall under this.
 
milomak said:
I would guess it falls under remuneration. i seem to remember from personal income tax returns that under gross remuneration there is a section for director's fees. It would seem to me that payment for attending board meetings would fall under this.
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But my Q is if one should levy VAT on it?
 
if you take my position above to be correct, then i would say no. just like no VAT is levied on your salary.
 
milomak said:
if you take my position above to be correct, then i would say no. just like no VAT is levied on your salary.
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Just to make sure I understand you: Mr Blu is the sole proprietor of a business. If he serves on a board as a director (this has nothing to do with his 'day job', by the way), you say he ought not add VAT to his invoice for his board attendance fee?
 
Why is he charging the company to attend a board meeting. Normally such things are stipulated in your appointment as director as attending board meetings is part of the job of being a director. A role which the company has employed you for. It sounds more like he is charging a consultancy fee. Which I am guessing is something else altogether.

but i would at this point highlight the part in bold in my sig.
 
milomak said:
Why is he charging the company to attend a board meeting. Normally such things are stipulated in your appointment as director as attending board meetings is part of the job of being a director. A role which the company has employed you for. It sounds more like he is charging a consultancy fee. Which I am guessing is something else altogether.

but i would at this point highlight the part in bold in my sig.
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He is the owner of XYZ Consultants (his day job). He serves as a director on ABC's Board (which has nothing to do with his day job; it is an entirely different company).
 
blunomore said:
He is the owner of XYZ Consultants (his day job). He serves as a director on ABC's Board (which has nothing to do with his day job; it is an entirely different company).
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I think it comes under director's emoluments. As I mentioned before, give SARS a call. They can be helpful!

Do it anonymously if you like.
 
its directors emoluments .. wouldn't think it has vat?
 
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