Page 28 - Juta's Indirect Tax

s 2 VALUE-ADDED TAX ACT 89 OF 1991 s 7
(b) any ownership or interest in land, other than an interest as mortgagee;
(c) a share in the share capital of a share block company; [Para. (c) amended by s. 13 (1) (b) of Act 136 of 1992.]
(d) any interest of a member of a close corporation which confers on the member a time-sharing interest as de ned in section 1 of the Property Time-sharing Control Act, 1983 (Act 75 of 1983), on the terms and conditions contained in the association agreement of such close corporation;
(e) an interest in a superannuation scheme.
(4) Notwithstanding anything in this section, the term
‘ nancial services’ does not include—
(a) the cession, assignment, transfer or other supply
of any right to receive payment in relation to any taxable supply where, as a result of any such cession, assignment, transfer or supply, output tax in relation to that taxable supply would not be or become attributable to any tax period for the purposes of section 16 (3); or
[Para. (a) substituted by s. 24 of Act 27 of 1997.] (b) . . .
[Para. (b) deleted by s. 105 (1) of Act 60 of 2008.]
(c) the transfer of any interest in or right to be paid money that is, or is to be, owing by a share block company under its loan obligation, as de ned in section 1 of the Share Blocks Control Act, to any person who is or
will be a shareholder of such share block company.
[Para. (c) substituted by s. 10 (1) (e) of Act 20 of 1994.] [Date of commencement of para. (c): 9 July 1993.]
[Sub-s. (4) deleted by s. 22 (b) of Act 136 of 1991 and added by s. 13 (1) (c) of Act 136 of 1992.]
3 Determination of ‘open market value’
(1) For the purposes of this section—
(a) ‘similar supply’, in relation to a supply of goods or
services, means any other supply of goods or services that, in respect of the characteristics, quality, quantity, functional components, materials and reputation of the rst-mentioned goods or services, is the same as, or closely or substantially resembles, that supply of goods or services;
(b) the open market value of a supply shall include any tax charged under section 7 (1) (a) on that supply.
(2) For the purposes of this Act, the open market value of any supply of goods or services at any date shall be the consideration in money which the supply of those goods or services would generally fetch if supplied in similar circumstances at that date in the Republic, being a supply freely offered and made between persons who are not connected persons.
(3) Where the open market value of any supply of goods or services cannot be determined under subsection (2), the open market value shall be the consideration in money which a similar supply would generally fetch if supplied in similar circumstances at that date in the Republic, being a supply freely offered and made between persons who are not connected persons.
(4) Where the open market value of any supply of goods or services cannot be determined in terms of subsection (2) or (3), the open market value shall be determined in accordance with a method approved by the Commissioner which provides a suf ciently objective approximation of the consideration in money which could be obtained for that supply of those goods or services.
(5) For the purposes of this Act the open market value of any consideration, not being consideration in money, for a supply of goods or services shall be ascertained in the same manner, with any necessary modi cations, as the
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open market value of any supply of goods or services is ascertained under the provisions of this section.
PART I ADMINISTRATION (ss. 4–6)
4 Administration of Act
(1) The Commissioner is responsible for carrying out the provisions of this Act.
(2) Administrative requirements and procedures for purposes of the performance of any duty, power or obligation or the exercise of any right in terms of this Act are, to the extent not regulated in this Act, regulated by the Tax Administration Act.
[S. 4 amended by s. 34 (1) of Act 34 of 1997 and substituted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
5 Exercise of powers and performance of duties
(1) The powers conferred and the duties imposed upon the Commissioner by or in terms of the provisions of this Act or any amendment thereof may be exercised or performed by the Commissioner, or by any SARS of cial.
[Sub-s. (1) substituted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(2) . . .
[Sub-s. (2) deleted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
6...
[S. 6 amended by s. 20 (a) and (b) of Act 37 of 1996, by s. 34 (1) of Act 34 of 1997, by s. 88 of Act 30 of 1998, by s. 66 (a) and (b) of Act 19 of 2001, by s. 150 (a), (b), (c) and (d) of Act 60 of 2001, by s. 116 (a), (b) and (c) of Act 74 of 2002, by s. 48 (b) of Act 12 of 2003, by s. 45 of Act 16 of 2004, by s. 13 of Act 10 of 2006, by s. 36 (b) of Act 21 of 2006 and by s. 26 of Act 36 of 2007 and repealed by
s. 271 of Act 28 of 2011 – date of commencement:
1 October 2012.]
PART II VALUE-ADDED TAX (ss. 7–22)
7 Imposition of value-added tax
(1) Subject to the exemptions, exceptions, deductions and adjustments provided for in this Act, there shall be levied and paid for the bene t of the National Revenue Fund a tax, to be known as the value-added tax—
(a) on the supply by any vendor of goods or services
supplied by him on or after the commencement date in the course or furtherance of any enterprise carried on by him;
(b) on the importation of any goods into the Republic by any person on or after the commencement date; and
[NB: Para. (b) has been substituted by s. 20 (1) (a) 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. See Pendlex below.]
(c) on the supply of any imported services by any person on or after the commencement date,
calculated at the rate of 14 per cent on the value of the supply concerned or the importation, as the case may be. [Sub-s. (1) amended by s. 23 (a) of Act 136 of 1991, by GN
2695 of 8 November 1991, by s. 14 of Act 136 of 1992, by s. 23 (1) (a) of Act 97 of 1993 and by s. 33 of Act 37 of 1996.]
Pendlex (to come into operation on the date on which the Customs Control Act 31 of 2014 takes effect)
(b) on the importation of any goods by any person on or
after the commencement date; and
Juta’s IndIrect tax 2016