SAICA comments on the draft IN: VAT treatment on debt collection

The submission contains SAICA’s comments on the Draft Interpretation Note that provides clarity on the VAT treatment of debt collection activities, whether undertaken by credit providers, in-house or outsourced to external debt collectors. In particular, this Draft IN examines the VAT treatment of prescribed amounts recovered by the debt collector from the debtor under the Debt Collectors Act No. 114 of 1998. It is noted that this Draft IN does not address debt collection activities outsourced to attorneys.