Sectoral Education Training Authorities (SETAs) fall within the definition of 'public authority' and, as such, are not required to register for VAT unless specifically notified by the Minister of Finance. ... Accordingly, from 1 April 2005, any payments that the SETAs receive from government will not include VAT.

Are SETA Grants taxable?

Mandatory Grants paid by the Seta to applicant companies are subject to tax. Discretionary Grants paid by the Seta to applicant firms are subject to tax.

Are Grants exempt from VAT?

Donation and grant income is not consideration for a supply and is a non-business activity that falls outside the scope of VAT. This is because this income is freely given with no strings attached and is treated by the charity as a gift.