Page 294 - Juta's Indirect Tax

Exports VaLue-added tax act: reGuLatIOns and nOtIces Vendors: permits/licences with the government of any other country in terms of which the tax to be refunded to a qualifying purchaser, in respect of
the export of movable goods from the Republic, is to be paid directly to the Government of that other country.
18. Transitional Rules
(1) With regards to supplies for the exportation of movable goods for which the time of supply occurred before the date of gazetting these regulations, the provisions of the VAT Export Incentive Scheme published as Notice 2761 in Government Gazette 19471 of 13 November 1998 are applicable.
(2) With regard to
(a) any supply for which the time of supply occurred on/after the date of gazetting these regulations; or (b) progressive supplies as contemplated in section 9(3)(b) of the Act where—
(i) any payment in respect of the supply becomes due or is received before as well as after the date of gazetting of these regulations; or
(ii) any invoice issued in relation to that payment occurs before as well as after the date of gazetting of these regulations; and
(iii) the goods are delivered only after the date of gazetting these regulations; the provisions of these regulations will be applicable.
REGULATION ISSUED IN TERMS OF SECTION 74 (1) READ WITH SECTION 23 (3) (d) OF THE VALUE-ADDED TAX ACT, 1991 (ACT 89 OF 1991)
Promulgated under
GN R446 in GG 38836 of 29 May 2015
In terms of section 74(1) of the Value-Added Tax Act, 1991, I, Nhlanhla Musa Nene, Minister of Finance, hereby
prescribe in the Schedule hereto, the continuous and regular activities for purposes of section 23(3)(d) of the Act.
DEFINITIONS
1. In this regulation, unless the context indicates otherwise, any word or expression to which a meaning has been assigned in the Act, bears the meaning so assigned and the following terms have the following meaning:
‘the Act’ means the Value-Added Tax Act, 1991 (Act 89 of 1991).
NATURE OF ACTIVITIES
2. (1) A person may apply to register as a vendor at the time that any goods or services are acquired directly in respect of the commencement of a continuous and regular activity set out below:
(a) Agriculture, Farming, Forestry and Fisheries:
(i) The cultivating of land for purposes of producing crops; (ii) The breeding and raising of livestock or wild animals;
(iii) The planting, maintaining and harvesting of tree plantations;
(iv) The farming of aquatic organisms or plants, including hydroponics, aquaponics and aeroponics; or
(v) Catching, taking or harvesting of ‘ sh’ as de ned in the Marine Living Resources Act, 1998 (Act 18 of 1998);
(b) Mining: The exploring for or extracting of any mineral, metal, oil, gas or natural gas resource;
(c) Ship and Aircraft Building: The building of ships, yachts, other oating vessels or aircrafts;
(d) Manufacture or Assembly: The manufacture or assembly of plant, machinery, motor vehicles (including motor
vehicles used in mining or farming) or locomotives;
(e) Property Development: The construction of residential or commercial buildings for purposes of selling or leasing
such buildings, to the extent that the activity is not an exempt activity contemplated in section 12 of the Act;
(f) Infrastructure Development: Infrastructure development in the form of buildings, permanent installations or
structures, for purposes of carrying on a person’s enterprise, where the–
(i) total value of such development, in terms of any contractual obligation accepted by that person, exceeds R1
million; and
(ii) completion of such development will take more than 12 months from date of commencement of that
development.
(g) Bene ciation: The treatment of goods, extracted as a result of a mining process, for purposes of improving the
properties of such goods.
(2) A person conducting any activity listed in paragraphs (a) to (g) must, where required in terms of any legislation,
have applied for or be in possession of the relevant permit, licence or similar document, issued or to be issued by the appropriate regulatory authority, authorising that person to conduct that activity.
286 Juta’s IndIrect tax 2016