Page 29 - Juta's Indirect Tax

s 7 VALUE-ADDED TAX ACT 89 OF 1991 s 8
(2) Except as otherwise provided in this Act, the tax payable in terms of paragraph (a) of subsection (1) shall be paid by the vendor referred to in that paragraph, the tax payable in terms of paragraph (b) of that subsection shall be paid by the person referred to in that paragraph and the tax payable in terms of paragraph (c) of that subsection shall be paid by the recipient of the imported services.
(3) (a) Where any goods manufactured in the Republic, being of a class or kind subject to excise duty or environmental levy under Part 2 or 3 of Schedule 1 to the Customs and Excise Act, have been supplied at a price which does not include such excise duty or environmental levy and tax has become payable in respect of the supply in terms of subsection (1) (a), value-added tax shall be levied and paid at the rate of 14 per cent for the bene t of the National Revenue Fund on an amount equal to the amount of such excise duty or environmental levy which, subject to any rebate of such excise duty or environmental levy under the said Act, is paid.
[Para. (a) substituted by s. 23 (b) of Act 136 of 1991, amended by GN 2695 of 8 November 1991, by s. 14 of Act 136 of 1992, by s. 23 (1) (b) of Act 97 of 1993 and by s. 33 of Act 37 of 1996 and substituted by s. 94 (a) of Act 32 of 2004.]
[NB: Para. (a) has been substituted by s. 20 (1) (b) 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.]
8 Certain supplies of goods or services deemed to be made or not made
(1) For the purposes of this Act, where—
(a) goods acquired, manufactured, assembled, construct- ed or produced by a person are sold, under a power exercisable by another person, in or towards satisfaction of a debt owed by the person whose goods are sold; and
(b) the person whose goods are sold has not furnished, to the person exercising the power of sale, a statement in writing that the supply of those goods would not be a taxable supply if those goods were sold by the person whose goods are sold, and stating fully the reasons why that supply would not be a taxable supply,
those goods shall be deemed to be supplied in the course of an enterprise.
(2) For the purposes of this Act, where a person ceases to be a vendor, any goods (other than any goods in respect of the acquisition of which by the vendor a deduction of input tax under section 16 (3) was denied in terms of section 17 (2) or would have been denied if those sections had been applicable prior to the commencement date) or right capable of assignment, cession or surrender which in either case then forms part of the assets of his enterprise, shall be deemed to be supplied by him in the course of his enterprise immediately before he ceased to be a vendor, unless the enterprise is carried on by another person who in terms of section 53 is deemed to be a vendor: Provided that—
(i) where such right is so deemed to be supplied that supply shall be deemed to be a supply of a service;
(ii) this subsection shall not apply to any such goods or right to the extent that a deduction in terms of section 16 (3) has not been allowed or will not be allowed, in respect of the acquisition or use by such vendor, where such vendor on or before 30 June 2000—
(aa) ceases to be a vendor for the sole reason that the total value of taxable supplies made by that vendor in the preceding period of 12 months has not exceeded R20 000; or
(bb) ceases to be a vendor in respect of a commercial rental establishment or a residential rental establishment for the sole reason that the total receipts and accruals derived from that commercial rental establishment or residential rental establishment in the preceding period of 12 months have not exceeded R48 000;
(iii) this subsection shall not apply to xed property to the extent that a deduction in terms of section 16 (3) has not been allowed or will not be allowed in respect of that xed property or any improvements thereto, where such vendor, on or before 30June 2000, requests the Commissioner in writing, in the circumstances contemplated in section 24 (2), to cancel his registration;
(iv) this subsection shall not apply to a vendor that is a constitutional institution listed in Schedule 1 to the Public Finance Management Act, 1999 (Act 1 of 1999) or a public authority, respectively, where that vendor (other than a vendor who applied and was registered
Pendlex (to come into operation on the date on which the Customs Control Act 31 of 2014 takes effect)
(a) Where any goods manufactured in the Republic, being of a class or kind subject to excise duty or environmental levy under Part 2 or 3 of Schedule 1 to the Excise Duty Act, have been supplied at a price which does not include such excise duty or environmental levy and tax has become payable in respect of the supply in terms of subsection (1) (a), value-added tax shall be levied and paid at the rate of 14 per cent for the bene t of the National Revenue Fund on an amount equal to the amount of such excise duty or environmental levy which, subject to any rebate of such excise duty or environmental levy under the said Act, is paid.
(b) The tax payable in terms of paragraph (a) shall be paid by the person liable in terms of the Customs and Excise Act for the payment of the said excise duty or environmental levy.
[Para. (b) substituted by s. 94 (a) of Act 32 of 2004.]
[NB: Para. (b) has been substituted by s. 20 (1) (b) 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) . . .
[Para. (c) deleted by s. 34 (1) of Act 34 of 1997.]
(d) Subject to this Act, the provisions of the Customs and Excise Act relating to the clearance of goods subject to excise duty or environmental levy and the payment of that excise duty or environmental levy shall mutatis mutandis have effect as if enacted in this Act.
[Para. (d) substituted by s. 94 (b) of Act 32 of 2004.]
[NB: Para. (d) has been substituted by s. 20 (1) (b) 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.]
Pendlex (to come into operation on the date on which the Customs Control Act 31 of 2014 takes effect)
(b) The tax payable in terms of paragraph (a) shall be paid by the person liable in terms of the Excise Duty Act for the payment of the said excise duty or environmental levy.
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Pendlex (to come into operation on the date on which the Customs Control Act 31 of 2014 takes effect)
(d) The tax on the clearance of goods subject to excise duty or environmental levy shall be recovered or refunded in terms of the relevant provisions of the Excise Duty Act, as if the tax were an excise duty or environmental levy contemplated in that Act, whether or not the said provisions apply for the purposes of any excise duty or environmental levy levied in terms of that Act.
VALUE-ADDED TAX ACT