When thinking about VAT and grants, your first instinct is probably that there should not be VAT on a grant. In this episode, I look at a tax court case that illustrates the importance of being careful when dealing with VAT and grants, as this can be more complex than it seems at first.

The aspects to consider include:

• The definition of a grant
• Its linkage with deemed supply and zero-rating rules
• The fundamental concepts of VAT, including the terms supply, services and consideration.

In episode 68 my podcast Tax Break – a podcast for SA tax practitioners and professionals – I look at a case that illustrates where these complexities practically.