Quote Originally Posted by Sathishzn View Post
Hi Dave,

Interesting feedback on this, hmmm... I looked into the matter in more detail and strangely enough I see that SARS deems a Labour Broker as an employee (Post Dec 1999) whereby this subsequently adheres to the definition of par.C of an enterprise, or more accurately does not support the furtherance of an enterprise, therefore confirming the non-VAT'able treatment on the invoice except for VAT'able items i.e. the service/brokerage fee.
That's correct and if the broker was not in possession of an IRP10, the client was obliged to withhold PAYE at 34%.

Then some years ago (2008?) it was changed; only a natural person (and Trust, I think) can be a labour broker. An incorporation falls outside of the definition, but can fall foul of the personal service company provision.

If that seems unfair ... a labour broker as defined cannot deduct any expenses in determination of his profit; only salaries. That's quite draconian if you ask me.