In the world of finance and taxation, clarity and understanding are paramount. In line with this, the South African Revenue Service (SARS) issued a Binding General Ruling (VAT) 62 on 12 December 2022 under the authority of the Value-Added Tax Act 89 of 1991. This ruling sheds light on the intricate Value-Added Tax (VAT) implications associated with securities lending arrangements. With the financial landscape constantly evolving, it is imperative to comprehend the VAT implications concerning these arrangements, as outlined under Sections 2(1)(f) and 12(a) of the VAT Act.
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