Page 31 - Juta's Indirect Tax

s 8 VALUE-ADDED TAX ACT 89 OF 1991 s 8
(5B) For the purposes of this Act, a vendor, being a foreign donor funded project, shall be deemed to supply services to the international donor to the extent of the international donor funding received from an international donor.
[Sub-s. (5B) inserted by s. 102 (1) (a) of Act 31 of 2005.] (6) For the purposes of this Act the transfer of all its assets and liabilities by an administrative unit of a municipality that is separately registered under subsection (2) of section 50, to the vendor intended in subsection (1)
of that section, shall be deemed not to be a supply.
[Sub-s. (6) substituted by s. 24 (a) of Act 136 of 1991, amended by s. 11 (a) of Act 20 of 1994 and by s. 67 (c) of Act 19 of 2001 and substituted by s. 42 (1) (c) of Act 9 of 2006.]
(7) The disposal of an enterprise as a going concern, or a part thereof which is capable of separate operation, shall for the purposes of this Act be deemed to be a supply of goods made in the course or furtherance of such enterprise.
(8) For the purposes of this Act, except section 16 (3), where a vendor receives any indemnity payment under a contract of insurance or is indemni ed under a contract of insurance by the payment of an amount of money to another person, that payment or indemni cation, as the case may be, shall, to the extent that it relates to a loss incurred in the course of carrying on an enterprise, be deemed to be consideration received for a supply of services performed on the day of receipt of that payment or on the date of payment to such other person, as the case may be, by that vendor in the course or furtherance of his enterprise: Provided that this subsection shall not apply in respect of any indemnity payment received or indemni cation under a contract of insurance where the supply of services contemplated by that contract is not a supply subject to tax under section 7 (1) (a): Provided further that this subsection shall not apply in respect of any indemnity payment received by a vendor under a contract of insurance to the extent that such payment relates to the total reinstatement of goods, stolen or damaged beyond economic repair, 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 these sections had been applicable prior to the commencement date.
[Sub-s. (8) substituted by s. 15 (1) (e) of Act 136 of 1992 and amended by s. 11 (b) of Act 20 of 1994.]
(9) For the purposes of this Act, where any vendor in carrying on an enterprise in the Republic consigns or delivers goods to an address outside the Republic or provides any service to or for the purposes of his branch or main business outside the Republic in respect of which the provisions of paragraph (ii) of the proviso to the de nition of ‘enterprise’ in section 1 are applicable, the vendor shall be deemed to supply such goods or service in the course or furtherance of his enterprise.
[Sub-s. (9) substituted by s. 24 (1) (a) of Act 97 of 1993 and by s. 166 (1) (c) of Act 45 of 2003.]
(10) For the purposes of this Act—
(a) where any goods are repossessed; or
(b) where there is a surrender of goods,
under an instalment credit agreement, a supply of such goods shall be deemed to be made by the debtor under such instalment credit agreement to the person exercising the person’s right or obligation of possession under such instalment credit agreement, and where such debtor is a vendor the supply shall be deemed to be made in the course or furtherance of the vendor’s enterprise unless such goods did not form part of the assets held or used by the vendor for the purposes of the vendor’s enterprise.
Juta’s IndIrect tax 2016
[Sub-s. (10) substituted by s. 166 (1) (b) of Act 31 of 2013 – date of commencement: 1 April 2014. The new subsection applies in respect of goods surrendered on or after that date.]
(11) For the purposes of this Act, a supply of the use or right to use or the grant of permission to use any goods (whether with or without a driver, pilot, crew or operator) under any rental agreement, instalment credit agreement, charter party, agreement for chartering or any other agreement under which such use or permission to use is granted, shall be deemed to be a supply of goods.
(12) . . .
[Sub-s. (12) deleted by GN 2695 of 8 November 1991 and by s. 15 (1) (f) of Act 136 of 1992.]
(13) For the purposes of this Act, where any person bets an amount on the outcome of a race or on any other event or occurrence, the person with whom the bet is placed shall be deemed to supply a service to such rst-mentioned person.
(13A) For the purposes of this Act, except section 16 (3), where any vendor who makes taxable supplies of services contemplated in subsection (13) of this section, receives any amount paid by any other vendor as a prize or winnings in consequence of a supply of such services made by the last-mentioned vendor to the rst-mentioned vendor, the rst-mentioned vendor shall be deemed to supply a service to the last-mentioned vendor.
[Sub-s. (13A) inserted by s. 20 of Act 46 of 1996.]
(14) For the purposes of this Act—
(a) where any goods are supplied by a vendor to a person
otherwise than in the circumstances contemplated in paragraph 2 (b) of the Seventh Schedule to the Income Tax Act, and a deduction under section 16 (3) in respect of the acquisition by the vendor of those goods was denied in terms of section 17 (2) or would have been denied if section 7 of this Act had been applicable prior to the commencement date, the vendor shall be deemed to have supplied the goods otherwise than in the course or furtherance of his enterprise;
(b) where any input tax is allowed in terms of section 18 (9) in respect of a game viewing vehicle or a hearse as contemplated in paragraph (e) or (f) of the de nition of ‘motor car’ in section 1, the subsequent supply of that game viewing vehicle or hearse shall be deemed to be supplied in the course of the vendor’s enterprise.
[Sub-s. (14) substituted by s. 24 (b) of Act 136 of 1991, by s. 24 (1) (b) of Act 97 of 1993 and by s. 95 (1) (d) of Act 32 of 2004.]
(14A) For the purposes of this Act, where input tax has been allowed on the conversion of a game viewing vehicle or a hearse, as contemplated in paragraph (e) or (f) of the de nition of ‘motor car’ in section 1 and that game viewing vehicle or hearse is subsequently applied for purposes other than those purposes as contemplated in paragraph (e) or (f) of the de nition of ‘motor car’ in section 1, a supply of that game viewing vehicle or hearse shall be deemed to take place.
[Sub-s. (14A) inserted by s. 95 (1) (e) of Act 32 of 2004.] (15) For the purposes of this Act, where a single supply of goods or services or of goods and services would, if separate considerations had been payable, have been charged with tax in part at the rate applicable under section 7 (1) (a) and in part at the rate applicable under section 11, each part of the supply concerned shall be deemed to be a separate supply: Provided that this subsection does not apply to a single charge as contemplated in paragraph (a) of the proviso to the de nition of ‘municipal rate’ in
section 1.
[Sub-s. (15) amended by s. 42 (1) (d) of Act 9 of 2006.] 23
VALUE-ADDED TAX ACT