Page 22 - Juta's Indirect Tax

s 1 VALUE-ADDED TAX ACT 89 OF 1991 s 1
(i) a supplier on the supply of goods or services made by that supplier to the vendor; or
(ii) the vendor on the importation of goods by that vendor; or
[Sub-para. (ii) substituted by s. 19 (1) (k) of Act 44 of 2014 – date of commencement: 20 January 2015.]
(iii) the vendor under the provisions of section 7 (3); (b) an amount equal to the tax fraction (being the tax fraction applicable at the time the supply is deemed to have taken place) of the lesser of any consideration in money given by the vendor for or the open market value of the supply (not being a taxable supply) to him by way of a sale on or after the commencement date by a resident of the Republic (other than a person or diplomatic or consular mission of a foreign country established in the Republic that was granted relief, by way of a refund of tax as contemplated in section 68) of any second-hand goods situated in the Republic; and
[Para. (b) substituted by GN 2695 of 8 November 1991 and by s. 12 (1) (h) of Act 136 of 1992, amended by s. 22 (e) of Act 97 of 1993, substituted by s. 9 (1) (h) of Act 20 of 1994 and amended by s. 23 (1) (f) of Act 27 of 1997, by s. 104 (1) (c) of Act 35 of 2007 and by s. 129 (1) (c) of Act 24 of 2011 — date of commencement: 10 January 2012. The deletion of the proviso to para. (b) applies in respect of goods consisting of xed property supplied on or after that date.]
(c) an amount equal to the tax fraction of the consideration in money deemed by section 10 (16) to be for the supply (not being a taxable supply) by a debtor to the vendor of goods repossessed under an instalment credit agreement or a surrender of goods: Provided that the tax fraction applicable under this paragraph shall be the tax fraction applicable at the time of supply of the goods to the debtor under such agreement as contemplated in section 9 (3) (c),
[Words preceding the proviso to para. (c) substituted by s. 165 (1) (h) of Act 31 of 2013 – date of commencement: 1 April 2014; the substituted paragraph applies in respect of goods surrendered on or after that date.]
where the goods or services concerned are acquired by the vendor wholly for the purpose of consumption, use or supply in the course of making taxable supplies or, where the goods or services are acquired by the vendor partly for such purpose, to the extent (as determined in accordance with the provisions of section 17) that the goods or services concerned are acquired by the vendor for such purpose;
‘instalment credit agreement’ means any agreement entered into on or after the commencement date whereby any goods consisting of corporeal movable goods or of any machinery or plant, whether movable or immovable—
future date or periodically in whole or in part in
instalments over a period in the future; and
(ii) such sum of money includes nance charges, including any amount determined with reference to the time value of money, stipulated in the lease; and
[Sub-para. (ii) substituted by s. 145 (1) (a) of Act 22 of 2012 – date of commencement: 1 January 2013. This substitution applies in respect of goods supplied on or after that date.]
(a)
are supplied under a sale under which—
(i) the goods are sold by the seller to the purchaser against payment by the purchaser to the seller of a stated or determinable sum of money at a stated or determinable future date or in whole or in part
in instalments over a period in the future; and
(ii) such sum of money includes nance charges
stipulated in the agreement of sale; and
(iii) the aggregate of the amounts payable by the purchaser to the seller under such agreement
exceeds the cash value of the supply; and
(iv) (aa) the purchaser does not become the owner of those goods merely by virtue of the delivery to or the use, possession or enjoyment by
him thereof; or
(bb) the seller is entitled to the return of those
goods if the purchaser fails to comply with
any term of that agreement; or are supplied under a lease under which—
(i) the rent consists of a stated or determinable sum of money payable at a stated or determinable
[Sub-para. (v) substituted by s. 145 (1) (b) of Act 22 of 2012 – date of commencement: 1 January 2013. This substitution applies in respect of goods supplied on or after that date.]
‘insurance’ means insurance or guarantee against loss, damage, injury or risk of any kind whatever, whether pursuant to any contract or law, and includes reinsurance; and ‘contract of insurance’ includes a policy of insurance, an insurance cover, and a renewal of a contract of insurance: Provided that nothing in this de nition shall apply to any insurance speci ed in section 2;
‘invoice’ means a document notifying an obligation to make payment;
‘licensed customs and excise storage warehouse’
means a warehouse licensed by the Commissioner at any place appointed for that purpose under the provisions of the Customs and Excise Act, which has been approved by the Commissioner for the storage of goods as he may approve in respect of that warehouse;
[De nition of ‘licensed customs and excise storage warehouse’ inserted by s. 101 (d) of Act 31 of 2005.]
‘local authority’ . . .
[De nition of ‘local authority’ amended by s. 64 (a) of Act
59 of 2000 and deleted by s. 40 (1) (i) of Act 9 of 2006.] ‘Minister’ means the Minister of Finance;
‘money’ means—
(a) coins (other than coins made wholly or mainly from a precious metal other than silver) which the South African Reserve Bank has issued in the Republic in accordance with the provisions of section 14 of the
(b)
(iii)
(iv) (v)
the aggregate of the amounts payable under such lease by the lessee to the lessor for the period of such lease (disregarding the right of any party thereto to terminate the lease before the end of such period) and any residual value of the leased goods on termination of the lease, as stipulated in the lease, exceeds the cash value of the supply; and the lessee is entitled to the possession, use or enjoyment of those goods for a period of at least 12 months; and
(aa) the lessee accepts the full risk of destruction or loss of, or other disadvantage to, those goods and assumes all obligations of whatever nature arising in connection with the insurance, maintenance and repair of those goods while the agreement remains in force; or
(bb) (A) the lessor accepts the full risk of destruc- tion or loss of, or other disadvantage to those goods and assumes all obligations of whatever nature arising in connection with the insurance of those goods; and
(B) the lessee accepts the full risk of main- tenance and repair of those goods and reimburses the lessor for the insurance of those goods,
while the agreement remains in force;
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Juta’s IndIrect tax 2016
Pendlex
[NB: The de nition of ‘licensed customs and excise storage warehouse’ has been deleted by s. 19 (1) (l) of Act 44 of 2014, a provision that will come into operation on the date on which the Customs Control Act 31 of 2014, takes effect.]