Page 279 - Juta's Indirect Tax

Municipalities VAaLuUEe-AadDDdeEDd TtaAXx aACctT: RreEGUuLaAtTIOnNsS aAnNdD nNOTtICcEeSs Section 10 (8) and (13)
for the nancial year ending on 30 June 2007. Any difference in input tax for the transition period between the revised apportionment percentage and the percentage determined in paragraph 3.2 must be accounted for in the September 2007 return, which is due on 25 October 2007.
3.7 No additional tax, penalty or interest will be levied on any tax which may be payable as a result of the adjustment in paragraph 3.6, provided that the amount is paid on or before 25 October 2007 or any further period that the Commissioner may allow.
4 Payments basis of accounting
4.1 Where a municipality accounts for VAT on the payments basis as contemplated in section 15 (2) of the Act, it must treat payments received by it on or after 1 July 2006 in respect of the supply of goods or services made by that municipality before that date as if that payment had been received before that date.
4.2 Where a municipality accounts for VAT on the payments basis as contemplated in section 15 (2) of the Act, it must treat payments made by it on or after 1 July 2006 in respect of the supply of goods or services acquired by that municipality before that date as if that payment had been made before that date.
DIRECTIONS FOR PURPOSES OF SECTION 10 (8) AND (13)
Promulgated under
GN 2835 in GG 13651 of 22 November 1991
I, Barend Jacobus du Plessis, Minister of Finance, hereby prescribe in terms of subsections (8) and (13) of section 10
of the Value-Added Tax Act, 1991 (Act 89 of 1991), that the consideration in money for the supplies contemplated in the said paragraphs be determined in the manner as set out in the Schedule.
SCHEDULE
(1) In this Schedule, any word or expression to which a meaning has been assigned in the Act, bears the meaning so assigned thereto, and, unless the context otherwise indicates—
‘determined value’, in relation to a motor vehicle, means—
(a) where a motor vehicle, except a motor vehicle contemplated in paragraph (b) (ii) of this de nition was acquired by a
vendor under an agreement of sale or exchange concluded by parties acting at arms’ length, the original cost thereof
to him, excluding any nance charges, interest, sales tax or value-added tax; or
(b) where such motor vehicle—
(i) is held by the vendor under a lease; or
(ii) was held by the vendor under a lease and the ownership thereof was acquired by him on the termination of the
lease,
the retail market value thereof at the time the vendor rst obtained the right of use of the motor vehicle or, where at such time such lease was a nancial lease for the purposes of the Sales Tax Act, 1978 (Act 103 of 1978), the cash value thereof as contemplated in paragraph 2 of Schedule 4 to that Act, or, where at such time such lease was an instalment credit agreement as contemplated in section 1 of the Act, the cash value thereof as de ned in section 1 of the Act reduced by the amount of value-added tax; or
(c) where such vehicle was acquired otherwise than contemplated in paragraphs (a) or (b), the market value of such motor vehicle at the time when the vendor rst obtained the vehicle or right of use thereof:
Provided that where an employee has been granted the right of use of such motor vehicle and such vehicle, or the right of use thereof, was acquired by the vendor not less than 12 months before the date on which the employee was granted such right of use, there shall be deducted from the amount so determined under the aforegoing provisions of this de nition a depreciation allowance calculated according to the reducing balance method at the rate of 15 per cent for each completed period of 12 months from the date on which the vendor rst obtained such vehicle or the right of use thereof to the date on which the said employee was rst granted the right of use thereof; and
‘the Act’ means the Value-Added Tax Act, 1991 (Act 89 of 1991).
2 (a) For the purposes of the proviso to subsection (8) of section 10 of the Act, the consideration in money for the deemed supply shall be 0,3 per cent of the determined value of the motor vehicle for each month or part thereof calculated as from 1 October 1991.
(b) If the method of determination of consideration in money contemplated in subparagraph (a) is used with reference to a motor vehicle, that method of determination of consideration in money shall also be used for the succeeding 11 months in respect of the motor vehicle in question.
(3) For the purposes of the proviso to subsection (13) of section 10 of the Act, the consideration in money for the deemed supply shall be —
(a) 0,3 per cent of the determined value of the motor vehicle (for each month or part thereof calculated as from 1
October 1991) where the motor vehicle is a motor car as contemplated in the Act and the vendor was in terms of section 17 (2) of the Act entitled, or would not have been entitled had that section been applicable prior to the commencement date, to deduct the full amount of input tax in terms of section 16 (3) of the Act in respect of such motor car when it was supplied to or imported by him; or
(b) in a case other than contemplated in paragraph (a) 0,6 per cent of the determined value of the motor vehicle (for each month or part thereof calculated as from 1 October 1991): Provided that where the employee pays a consideration for the right of use of such motor vehicle, the consideration in money determined monthly in terms of this paragraph shall be reduced by the lesser of the consideration paid by the said employee or the amount of the consideration in money determined monthly:
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