Page 30 - Juta's Indirect Tax

s 8 VALUE-ADDED TAX ACT 89 OF 1991 s 8
as a vendor during the period 22 December 2003 to 31 March 2005) ceases to be a vendor as a result of— (aa) the substitution of the de nition of ‘public authority’
in the Revenue Laws Amendment Act, 2004 or the insertion of paragraph (viii) to the proviso to the de nition of ‘enterprise’ in the Revenue Laws Amendment Act, (Act 45 of 2003); or
(bb) the re-classi cation of that vendor or part of that vendor’s activities within the Schedules to the Public Finance Management Act, 1999 (Act 1 of 1999) subsequent to the introduction of the Revenue Laws Amendment Act, 2004;
(v) this subsection shall not apply to any such goods or right to the extent that output tax has been paid in terms of section 16 (4) read with section 22 (3) in respect of such goods or right; and
[Para. (v) added by s. 120 (1) (b) of Act 7 of 2010.]
(vi) this proviso shall not apply to the extent that input tax in respect of such goods or right has been deducted in
terms of section 16 (3) read with section 22 (4).
[Para. (vi) added by s. 120 (1) (b) of Act 7 of 2010.]
[Sub-s. (2) amended by GN 2695 of 8 November 1991, by s. 15 (1) (a) and (b) of Act 136 of 1992 and by s. 83 (a) of Act 53 of 1999.]
(2A) Where a supply is deemed to have been made by a vendor in terms of subsection (2) and that vendor ceases to be a vendor solely as a consequence of the circumstances contemplated in paragraph (ii) of the proviso to subsection (2), the tax payable to the Commissioner in respect of that deemed supply shall, if the amount thereof is in excess of R3 000, be paid to the Commissioner in so many equal monthly instalments as the Commissioner may allow, the last of which shall not be paid later than 28 February 2001.
[Sub-s. (2A) inserted by s. 83 (b) of Act 53 of 1999.] (2B) Where a supply is deemed to have been made by a vendor in terms of subsection (2) and that vendor ceases on or before 30 June 2005 to be a vendor solely as a consequence of the introduction of proviso (ix) to the de nition of ‘enterprise’ in section 1, the tax payable to the Commissioner in respect of that deemed supply shall, if the amount thereof is in excess of R3 000, be paid to the Commissioner in so many equal monthly instalments as
the Commissioner may allow.
[Sub-s. (2B) inserted by s. 95 (1) (b) of Act 32 of 2004.]
(2C) . . .
[Sub-s. (2C) inserted by s. 106 (1) (a) of Act 60 of 2008 and deleted by s. 131 (1) of Act 24 of 2011– date of commencement: 1 March 2012.]
(2D) Where a supply is deemed to have been made by a vendor in terms of subsection (2) and that vendor ceases to be a vendor on or before 30 June 2009 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 R1 million, the tax payable in respect of that deemed supply shall be paid in six equal monthly instalments or in so many monthly instalments as the Commissioner may allow.
[Sub-s. (2D) inserted by s. 106 (1) (a) of Act 60 of 2008.] (2E) Where a supply is deemed to have been made by a vendor in terms of subsection (2) and that vendor 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 the amount contemplated in section 23 (1) or 23 (3), the Minister may by regulation prescribe the period in which the tax payable
in respect of that deemed supply shall be paid.
[Sub-s. (2E) inserted by s. 91 (1) (a) of Act 17 of 2009.] 22
(2F) Where a supply is deemed to have been made by a vendor in terms of subsection (2) and the vendor ceases on or after 1 January 2013 to be a vendor solely by reason of the supply of goods or services being exempt under section 12 (l) or (m), the value of that deemed supply shall be deemed to be nil.
[Sub-s. (2F) inserted by s. 146 (1) (a) of Act 22 of 2012 – date of commencement: 1 January 2013. This new subsection applies in respect of goods or services supplied on or after that date.]
(2G) Subject to section 24 (3), where a supply is deemed to have been made by a vendor in terms of subsection (2) and that vendor ceases to be a vendor on 1 April 2014 for the sole reason of the exemption contemplated in section 12 (f) (iv), the tax payable in respect of the deemed supply shall be paid in six equal monthly instalments or in so many monthly instalments as the Commissioner may allow.
[Sub-s. (2G) inserted by s. 166 (1) (a) of Act 31 of 2013 – date of commencement: 1 April 2014. This new subsection applies in respect of goods surrendered on or after that date.]
(3) For the purposes of this Act, a credit agreement to which section 121 of the National Credit Act, 2005 (Act 34 of 2005), applies shall be deemed not to be a supply of goods or services if the consumer has exercised the right to rescind that agreement in the manner and within the time permitted by that section.
[Sub-s. (3) substituted by s. 172 (2) of Act 34 of 2005 and by s. 27 (1) (a) of Act 36 of 2007.]
(4) (a) For the purposes of this Act, any lay-by agreement (as de ned in Government Notice R1234 of 13 June 1980, as amended by Government Notice R1814 of 29 August 1980, issued in terms of section 9 of the Sale and Service Matters Act, 1964 (Act 25 of 1964)), whereby goods are sold for a consideration not exceeding R10 000 and are reserved by deposit for delivery when the purchase price or a determined portion thereof is paid shall not be deemed to be a supply of goods or services unless and until the goods are delivered to the purchaser.
[Para. (a) amended by GN 2695 of 8 November 1991 and by s. 15 (1) (c) of Act 136 of 1992 and substituted by s. 83 (c) of Act 53 of 1999.]
(b) Where such agreement is cancelled or terminates for any other reason and the seller retains any amount paid by the purchaser or recovers any amount owing by the purchaser under such agreement, the seller shall for the purposes of this Act be deemed to have supplied a service in respect of such agreement.
(5) For the purposes of this Act a designated entity shall be deemed to supply services to any public authority or municipality to the extent of any payment made by the public authority or municipality concerned to or on behalf of that designated entity in the course or furtherance of an enterprise carried on by that designated entity.
[Sub-s. (5) substituted by s. 166 (1) (b) of Act 45 of 2003, by s. 42 (1) (a) of Act 9 of 2006 and by s. 106 (1) (b) of Act 60 of 2008.]
(5A) For the purposes of section 11 (2) (t), a vendor (excluding a designated entity) shall be deemed to supply services to any public authority, municipality or constitutional institution listed in Schedule 1 to the Public Finance Management Act, 1999 (Act 1 of 1999), to the extent of any grant paid to or on behalf of that vendor in the course or furtherance of an enterprise carried on by that vendor.
[Sub-s. (5A) inserted by s. 95 (1) (c) of Act 32 of 2004 and substituted by s. 42 (1) (b) of Act 9 of 2006 and by s. 106 (1) (c) of Act 60 of 2008.]
Juta’s IndIrect tax 2016