Fortification. 1  a broad elevation or mound of earth raised as a fortification around a place and usually capped with a stone or earth parapet. 2  such an elevation together with the parapet.
A value-added tax (VAT) is a consumption tax levied on products at every point of sale where value has been added, starting from raw materials and going all the way to final retail purchase by a consumer. Ultimately, the consumer pays VAT; buyers earlier in the chain of production receive reimbursements for previous VAT taxes paid.
VAT translates as the value that is added to the goods or serves. In a basic example â you buy a pencil for R3.00 and sell it for R4.00, you have added value of R1.00. So, to calculate the revenue collected by SARS (which you have to pay to SARS for being a Vat Vendor) â it is the Vat on R1.00. You will need to include VAT on every quote that is sent out to your customers and clients. 2  Keep documentary proof of zero-rating â if you do not charge VAT, you can still claim for VAT on the items supplied, however you must always keep proof that you are entitled to do so, or otherwise SARS will raise a red flag.