Page 299 - Juta's Indirect Tax

PN 2/1991 VaLue-added tax act: PractIce nOtes PN 4/1991
PRACTICE NOTES
PRACTICE NOTE 2 OF 1991 – VAT: TAX INVOICES, DEBIT NOTES AND CREDIT NOTES
General Notice 722 published in Government Gazette 14210 of 14 August 1992 Withdrawn by Issue 2 of Interpretation Note 83 on 9 April 2015
PRACTICE NOTE 3 OF 1991 — VAT: PRICE LISTS AND PRICE TICKETS ON GOODS
issued by
DEPARTMENT OF FINANCE
DIRECTORATE: INLAND REVENUE
OFFICE OF THE COMMISSIONER FOR INLAND REVENUE General Notice 722 published in Government Gazette 14210 of 14 August 1992 (SECTION 65 OF THE ACT)
All vendors are required to re ect the price for the supply of goods or services in any price list, price ticket, advertisement or quote on either an inclusive basis or by giving the basic price, the tax on the basic price and the inclusive amount.
1 INTERIM DISPENSATION
In order to facilitate the change-over from the sales tax exclusive price system to the VAT inclusive system above, vendors will be permitted to continue using the exclusive basis on price lists for a period of six months ending on 31 March 1992 and on price tickets for a period of one month ending on 31 October 1991. Thereafter they will be obliged to apply the inclusive system as above.
Notwithstanding this dispensation all vendors are urged in their own interests to change to the inclusive basis as soon as possible to avoid problems with their customers. All new price lists should therefore be produced on the inclusive basis.
Where exclusive prices are used during the 6 month period, this fact must be stated clearly on all price lists and by way of a notice prominently displayed at all entrances to the premises in which the enterprise is carried on and at all points in such premises where payments are effected.
2 TRADE PRICE LISTS
Where a vendor issues a price list which is only used in respect of the supply of goods or services to other registered vendors, the prices may be re ected on an exclusive basis, provided statements appear on each page of the price list to the effect that—
• •
VAT at 10% must be added to all prices; and
the price list is for use only to registered vendors.
PRACTICE NOTE 4 OF 1991 — VAT: TIME OF SUPPLY
issued by
DEPARTMENT OF FINANCE
DIRECTORATE: INLAND REVENUE
OFFICE OF THE COMMISSIONER FOR INLAND REVENUE General Notice 722 published in Government Gazette 14210 of 14 August 1992 (SECTION 9)
ESTATE AGENTS’ COMMISSION
1
Where an estate agent (who is a registered vendor) earns a commission in respect of the sale of a property, the agreement of sale in question will not be regarded as an invoice for determining the time of supply of the agent’s services in terms of section 9 (1) of the Act.
The estate agent will therefore be required to account for the output tax on the commission in his tax return for the tax period during which the commission is actually paid to him (or released from his trust account for this purpose) or during which he issues a separate invoice to the seller for the commission payable, whichever is the earlier.
2 RETENTION MONIES
2.1 Where a building or other contract provides for a retention amount to be withheld from a particular progress payment or other contractual payment, the contractor will not have to charge or account for output tax on the retention amount at the time of the progress or contractual payment. The retention amount only becomes due or is paid by the client at a later date in accordance with the terms of the contract and the contractor is therefore only required to account for the output tax on the retention amount at that later date.
2.2 If a retention amount becomes payable after 30 September 1991, but it relates to construction services (or any other services which were not taxable services for sales tax purposes) performed prior to 30 September 1991, then
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