Page 32 - Juta's Indirect Tax

s 8 VALUE-ADDED TAX ACT 89 OF 1991 s 8
(16) (a) The supply by a vendor—
(i) of any goods (other than xed property acquired
prior to the commencement date by a vendor who is a natural person if such property was used by him mainly as his private residence and no deduction of any amount has been made by him under section 16 (3) in respect of such property); or
(ii) of services,
where such goods or services were acquired or imported by him partly for the purpose of consumption, use or supply in the course of making taxable supplies (including supplies which would have been taxable supplies if section 7 of this Act had been applicable prior to the commencement date) and were held or utilized by him partly for the said purpose immediately prior to the supply by him of such goods or services, shall be deemed to be made wholly in the course or furtherance of his enterprise.
(b) The supply by any vendor of xed property acquired prior to the commencement date by such vendor, being a natural person, shall be deemed to be made otherwise than in the course or furtherance of his enterprise provided—
(i) such property was used by him prior to such supply mainly as his private residence; and
(ii) no deduction of any amount has been made by him under section 16 (3) in respect of such property. [Sub-s. (16) added by s. 24 (c) of Act 136 of 1991 and
substituted by s. 15 (1) (g) of Act 136 of 1992.]
(17) (a) For the purposes of this Act, where, together with the supply of a share referred to in the de nition of ‘ xed property’ in section 1, any amount of the loan obligation, as de ned in section 1 of the Share Blocks Control Act, of the share block company is allocated as contemplated in section 14 of that Act, or any amount of the loan obligation thus allocated is delegated, or any interest in or right to be paid money that is, or is to be, owing by the share block company under its loan obligation is transferred to any person who is or will be a shareholder of such share block company, such allocation, delegation or transfer, as the case may be, shall be
deemed to form part of the supply of such share.
[Para. (a) substituted by s. 11 (c) of Act 20 of 1994.]
(b) For the purposes of this Act, where any allocation, delegation or transfer as contemplated in paragraph (a) is made without the supply of a share referred to in the de nition of ‘ xed property’ in section 1 and otherwise than in the circumstances contemplated in that paragraph, such allocation, delegation or transfer shall be deemed to constitute
the supply of a share referred to in the said de nition.
[Sub-s. (17) added by s. 15 (1) (h) of Act 136 of 1992.]
(18) For the purposes of the de nition of ‘input tax’ in section 1 and section 18 (4) and (5), as applicable to any share block company, any taxable supply of a share referred to in subsection (17) made on or after a date xed by the Minister by notice in the Gazette by a share block developer where such share is a share in a share block scheme in respect of which that developer is a share block developer as contemplated in section 1 of the Share Blocks Control Act, shall be deemed to have been made by the share block company in relation to which that developer is a share block developer, to the extent that—
(19) For the purposes of this Act, where any supply of—
(a) (b)
the supply of such share to such developer was not a taxable supply by such company to such developer; or such developer was not or will not in terms of section 16 (3) be entitled to make a deduction of input tax referred to in paragraph (b) of the de nition of ‘input tax’ in section 1 in respect of the supply of such share to him.
such supply shall be deemed to have been made in the course or furtherance of an enterprise.
[Words following sub-para. (ii) substituted by s. 166 (1) (c) of Act 31 of 2013 – date of commencement: 1 April 2014. The substituted wording applies in respect of goods or services supplied on or after that date.]
[Sub-s. (19) added by s. 11 (e) of Act 20 of 1994 and substituted by s. 146 (1) (b) of Act 22 of 2012 – date of commencement: 1 January 2013. This substituted subsection applies in respect of goods or services supplied on or after that date.]
(20) For the purposes of this Act, where an importation of goods is deemed to have been made by an agent in the circumstances contemplated in section 54 (2A) (b), such agent shall be deemed to make a supply of goods to the recipient of the supply by the principal, as contemplated in subparagraph (iii) of that section.
[Sub-s. (20) added by s. 25 of Act 27 of 1997.]
(21) For the purposes of this Act, compensation or any other payment, other than an amount contemplated in section 12 (a), received by a vendor in consequence of the expropriation of xed property, is deemed to be received in respect of a supply of goods made in the course or furtherance of an enterprise unless that xed property forms no part of the assets held or used by the vendor for the purposes of an enterprise.
[Sub-s. (21) added by s. 151 of Act 60 of 2001 and substituted by s. 95 (1) (f) of Act 32 of 2004.]
(22) For the purposes of thisAct, where two or more public higher education institutions or one or more subdivisions of such institutions are merged with or incorporated into a single public higher education institution in terms of a direction by the Minister of Education in terms of section 23 or 24 of the Higher Education Act, 1997 (Act 101 of 1997), such institutions or such subdivisions thereof prior to the merger or incorporation and the newly merged or incorporated single institutions shall be deemed to be one and the same institution.
[Sub-s. (22) added by s. 166 (1) (d) of Act 45 of 2003.]
(23) For the purposes of this Act a vendor shall be deemed to supply services to any public authority or municipality to the extent of any payment made to or on behalf of that vendor in terms of a national housing programme contemplated in the Housing Act, 1997 (Act 107 of 1997), which is approved by the Minister by regulation after consultation with the Minister responsible for Human Settlements.
[Sub-s. (23) added by s. 166 (1) (d) of Act 45 of 2003 and substituted by s. 42 (1) (e) of Act 9 of 2006 and by s. 120 (1) (c) of Act 7 of 2010.]
[Sub-s. (18) added by s. 15 (1) (h) of Act 136 of 1992, substituted by s. 24 (1) (c) of Act 97 of 1993 and amended by s. 11 (d) of Act 20 of 1994.]
(a)
(b)
goods consisting of immovable property is made by a share block company—
(i) in the circumstances referred to in Item 8 of Schedule 1 to the Share Blocks Control Act; or
(ii) as a result of a sale by that share block company of that immovable property to a person who held a right of exclusive use of that immovable property, which right was conferred by reason of the ownership of a share by that person in that share block company; or
services comprising the waiving of rights against a share block company is made to that share block company—
(i) in the circumstances referred to in Item 8 of Schedule 1 to the Share Blocks Control Act; or
(ii) by a person as part of a sale contemplated in paragraph (a)(ii),
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Juta’s IndIrect tax 2016