Page 325 - Juta's Indirect Tax

IN 31 (3) VaLue-added tax act: InterPretatIOn nOtes IN 31 (3)
U
Compensation paid by a public authority in terms of section 19 of the Animal Diseases Act No. 35 of 1984 (the Animal Diseases Act) for the supply of a ‘controlled animal or thing’ to that public authority [s 11 (1) (r)]
A document issued to the vendor by the public authority con rming that the compensation is paid in terms of section 19 of the Animal Diseases Act.
V
Goods (being xed property) supplied to the Minister of the department of Rural Development & Land Reform (previously known as the Minister of Land Affairs) who acquired those goods in terms of the Provision of Land and Assistance Act 126 of 1993 (PLA Act), or section 42E of the Restitution of Land Rights Act 22 of 1994 [s 11 (1) (s)]
(a) The vendor’s copy of the zero-rated tax invoice;
(b) A copy of the contract of sale or a copy of the Department
of Rural Development & Land Reform Form/Notice; and
(c) Proof of payment.
W
Goods (being xed property) supplied to a person to the extent that the consideration for those goods is an advance or subsidy granted in terms of the PLA Act [s 11 (1) (t)]
(a) The vendor’s copy of the zero-rated tax invoice;
(b) A copy of the contract of sale or a copy of the Department
of Rural Development & Land Reform Form/Notice; and
(c) Proof of payment to the extent that the payment is received from the Department of Rural Development & Land Reform.
X
Goods, other than the supply of goods by an inbound duty and tax free shop, which have been imported and entered for storage in a licensed Customs and Excise storage warehouse but have not been entered for home consumption [s 11 (1) (u)]
Goods that are supplied within the licensed Customs and Excise storage warehouse require the following documentation –
(a) the vendor’s copy of the zero-rated tax invoice;
(b) the recipient’s order or the contract between the recipient
and the vendor;
(c) the relevant Customs documentation; and d) proof of
payment.
Y
Goods supplied by an inbound duty and tax-free shop [s 11 (1) (v)]
(a) The vendor’s copy of the zero-rated tax invoice; and (b) A copy of the monthly consolidated “ex warehouse” Customs Declaration; and (c) Proof of payment.
5.2 Supply of services [section 11 (2)]
Table B below provides an overview of the documentary proof to be obtained and retained by a vendor in respect of a supply of services in terms of section 11 (2), as well as references to the relevant sections of the VAT Act.
Table B – Vendors making a supply of services in terms of section 11 (2)
ITEM
DESCRIPTION OF SUPPLY
DOCUMENTARY PROOF REQUIRED
A
International transport services in respect of goods [s 11 (2) ((a)]
(a) The vendor’s copy of the zero-rated tax invoice;
(b) A copy of the transport contract and the applicable transport document, indicating the collection and delivery addresses or the point of origin and the point of destination of the transport;
(c) Proof of delivery of the goods; and
(d) Proof of payment.
B
International transport services in respect of passengers [s 11 (2) ((a)]
(a) The vendor’s copy of the zero-rated tax invoice; and
(b) A copy of the ticket issued by the vendor to the recipient of
the international transport service.
C
Domestic air transportation associated with the international carriage by air of passengers [s 11 (2) ((b)]
(a) The vendor’s copy of the zero-rated tax invoice; and
(b) A copy of the ticket issued by the supplier of the international transport to the recipient of the international transport service.
D
Local transport services of goods provided by the same supplier of the international transport services [s 11 (2) ((c)]
Note: In the event that the vendor supplying the services that are zero-rated in terms of this section subcontracts the local transport of the goods, the subcontractor must levy VAT at the standard rate on the supply of local transport services to the vendor – see paragraph 3.1 of VAT Practice Note: No. 10 – 1 October 1991 (PN10).
(a) The vendor’s (i.e. the vendor supplying the local and international transport services) copy of the zero-rated tax invoice;
(b) A copy of the transport contract and the applicable transport document, indicating the collection and delivery addresses or the point of origin and the point of destination of the transport;
(c) Proof of delivery of the goods; and
(d) Proof of payment.
Juta’s IndIrect tax 2016 317