New guidelines issued by the VAT Department on sporting facilities

The VAT Department has on the 28^th November 2017, issued new guidelines with respect to the reduced rate of 7% on the use of sporting facilities. The guidelines stipulate that as from the 1st January 2018, the reduced rate of 7% applicable on the use of sporting facilities in terms of item 11 of the 8^th Schedule to the Value Added Tax Act shall apply also to the use of sporting facilities consisting of movable equipment which is used exclusively for physical activity.