Integrated Rapid Public Transport Network (IRPTN) is a public transport network that streamlines numerous transport modal options into a single coherent package. The intended modes of integrated transport include Metrorail services, conventional bus services, minibus taxi integration, feeder bus services, improved pedestrian and bicycle access, metered taxi integration and park-and-ride facilities.
The National Department of Transport has identified certain metropolitan cities for an Integrated Rapid Public Transport Network to support the economic development of the area and some of the relevant municipalities have started with the progressive implementation of the IRPTN.
The most significant changes brought about by the implementation of the IRPTN is the introduction of rapid bus transit systems, dedicated right-of-way infrastructure (including dedicated transport lanes), increased security and surveillance infrastructure and Public Transport Information Technology. The public transport infrastructure and systems grant is the main funding source for the introduction of the bus rapid transit systems.
The supplies underlying the provision of the IRPTN may be acquired for taxable, exempt or mixed purposes. Providing public transport services to fare-paying passengers is an exempt supply for VAT purposes. However, the installation and maintenance of the IRPTN infrastructure by municipalities may form part of either their taxable activities or services rendered in accordance with the receipt of grant funding from the National Department of Transport.
The implementation and operation of the IRPTN may result in municipalities incurring mixed expenses. Municipalities must apply their apportionment ratio to the input tax incurred on mixed expenses as directed by BGR 4. The VAT 419 Guide provides information on the apportionment ratios.
Applications for VAT rulings in this regard must be sent to SARS either by email to VATRulings@sars.gov.za or facsimile on 086 540 9390.
