Page 19 - Juta's Indirect Tax

s 1 VALUE-ADDED TAX ACT 89 OF 1991 s 1
other concern of a continuing nature or in the form of (ii) any branch or main business of an enterprise
an association or club;
[Para. (a) substituted by s. 40 (1) (e) of Act 9 of 2006.] (b) without limiting the applicability of paragraph (a) in respect of any activity carried on in the form of a commercial, nancial, industrial, mining, farming,
shing or professional concern—
(i) the making of supplies by any public authority
of goods or services which the Minister, having regard to the circumstances of the case, is satis ed are of the same kind or are similar to taxable supplies of goods or services which are or might be made by any person other than such public authority in the course or furtherance of any enterprise, if the Commissioner, in pursuance of a decision of the Minister under this subparagraph, has noti ed such public authority that its supplies of such goods or services are to be treated as supplies made in the course or furtherance of an enterprise;
(ii) the activities of any welfare organization as respects activities referred to in the de nition of ‘welfare organization’ in this section;
(iii) the activities of any share block company (other than the services in respect of which section 12 (f) applies) where such company has applied for registration as a vendor under the provisions of section 23 (3) and has been registered as such;
[Sub-para. (iii) added by s. 12 (1) (d) of Act 136 of 1992.]
[NB: A sub-para. (iv) has been inserted by s. 23 (1) (e) of the Taxation Laws Amendment Act 27 of 1997, a provision which will be put into operation by proclamation. See Pendlex below.]
(v) the activities of a foreign donor funded project;
[Sub-para. (v) added by s. 101 (b) of Act 31 of 2005.] (vi) the supply of electronic services by a person from a place in an export country, where at least
two of the following circumstances are present: (aa) The recipient of those electronic services is
a resident of the Republic;
(bb) any payment to that person in respect of
such electronic services originates from a bank registered or authorised in terms of the Banks Act, 1990 (Act 94 of 1990);
(cc) the recipient of those electronic services has a business address, residential address or postal address in the Republic:
[Sub-para. (vi) added by s. 165 (1) (e) of Act 31 of 2013 (date of commencement: 1 April 2014; the added subparagraph applies in respect of electronic services supplied on or after that date) and substituted by s. 95 (1) (a) of Act 43 of 2014 – date of commencement: 1 April 2015.]
(c) . . .
[Para. (c) amended by s. 22 (b) of Act 97 of 1993 and by
s. 9 (1) (a) of Act 20 of 1994 and deleted by s. 40 (1) (f) of Act 9 of 2006.]
Provided that—
(i) anything done in connection with the commencement
or termination of any such enterprise or activity shall be deemed to be done in the course or furtherance of that enterprise or activity;
permanently situated at premises outside the Republic shall be deemed to be carried on by a person separate from the vendor, if—
(aa) the branch or main business can be separately
identi ed; and
(bb)an independent system of accounting is
maintained by the concern in respect of the
branch or main business;
[Para. (ii) substituted by s. 22 (c) of Act 97 of 1993, by s. 9 (1) (b) of Act 20 of 1994 and by s. 92 (1) (e) of Act 32 of 2004.]
(iii) (aa) the rendering of services by an employee to his employer in the course of his employment or the rendering of services by the holder of any of ce in performing the duties of his of ce, shall not be deemed to be the carrying on of an enterprise to the extent that any amount constituting remuneration as contemplated in the de nition of remuneration’ in paragraph 1 of the Fourth Schedule to the Income Tax Act is paid or is payable to such employee or of ce holder, as the case may be;
[Sub-para. (aa) substituted by s. 164 (1) (f) of Act 45 of 2003.] (bb) subparagraph (aa) of this paragraph shall not apply in relation to any employment or of ce accepted by any person in carrying on any enterprise carried on by him independently of the employer or concern by whom the amount of
remuneration is paid or payable;
(iv) any activity carried on by a natural person essentially
as a private or recreational pursuit or hobby or any activity carried on by a person other than a natural person which would, if it were carried on by a natural person, be carried on essentially as a private or recreational pursuit or hobby shall not be deemed to be the carrying on of an enterprise;
(v) any activity shall to the extent to which it involves the making of exempt supplies not be deemed to be the carrying on of an enterprise;
(vi) the activity of underwriting insurance business by Underwriting Members of Lloyd’s of London, to the extent that contracts of insurance are concluded in the Republic, shall be deemed to be the carrying on of an enterprise;
[Para. (vi) added by GN 2695 of 8 November 1991 and by s. 12 (1) (e) of Act 136 of 1992 and substituted by s. 81 (1) (e) of Act 53 of 1999.]
(vii) . . .
[Para. (vii) added by s. 9 (1) (c) of Act 20 of 1994, substituted by s. 114 (1) (a) of Act 74 of 2002 and deleted by s. 104 (1) (b) of Act 60 of 2008.]
(viii) the making of supplies by a constitutional institution listed in Schedule 1 of the Public Finance Management Act, 1999 (Act 1 of 1999), shall be deemed not to be the carrying on of an enterprise;
[Para. (viii) inserted by s. 164 (1) (g) of Act 45 of 2003.] (ix) where a person carries on or intends carrying on an enterprise or activity supplying commercial accommodation as contemplated in paragraph (a) of the de nition of ‘commercial accommodation’ in section 1, and the total value of taxable supplies made by that person in respect of that enterprise or activity in the preceding period of 12 months or which it can reasonably be expected that that person will make in a period of 12 months, as the case may be, will not exceed R120 000, shall be deemed not to be the
carrying on of that enterprise;
[Para. (ix) added by s. 92 (1) (f) of Act 32 of 2004 and substituted by s. 128 (1) (f) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 April 2016.]
Pendlex
(iv) the activities of any person who continuously or regularly supplies telecommunication services to any person who utilizes such services in the Republic;
Juta’s IndIrect tax 2016
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VALUE-ADDED TAX ACT