Page 333 - Juta's Indirect Tax

IN 31 (3) VaLue-added tax act: InterPretatIOn nOtes IN 31 (3)
(m) the services comprise—
(i) the ling, prosecution, granting, maintenance, transfer, assignment, licensing or enforcement, including the
incidental supply by the supplier of such services of any other services which are necessary for the supply of such services, of intellectual property rights, including patents, designs, trademarks, copyrights, know-how, con dential information, trade secrets or similar rights; or
(ii) the acceptance by any person of an obligation to refrain from pursuing or exercising in whole or in part any such rights,
where and to the extent that those rights are for use outside the Republic; or
(n) the services comprise the carrying on by a welfare organisation of the activities referred to in the de nition of ‘welfare
organisation’ in section 1 and to the extent that any payment in respect of those services is made in terms of section
8 (5) those services shall be deemed to be supplied by that organisation to a public authority or municipality; or
(o) the services are supplied as contemplated in section 8 (9) by a vendor, not being services which are supplied
directly—
(i) in connection with land or any improvements thereto situated inside the Republic; or
(ii) in connection with movable property (excluding debt securities, equity securities or participatory securities) situated inside the Republic at the time the services are rendered, except movable property which—
(aa) is consigned or delivered to the said person at an address in an export country subsequent to the supply
of such services; or
(bb) forms part of a supply by the said person to a registered vendor and such services are supplied to the
said person for purposes of such supply to the registered vendor; or
(iii) to the said person or any other person, other than in the circumstances contemplated in subparagraph (ii) (bb),
if the said person or such other person is in the Republic at the time that the services are rendered; or
(p) ...
(q) the services are deemed to be supplied in terms of section 8 (5B);
(r) the services comprise of the vocational training of employees (other than educational services contemplated in
section 12 (h)) for an employer who is not a resident of the Republic and who is not a vendor; or
(s) the services are deemed to be supplied to a public authority or municipality in terms of section 8 (23); or
(t) the services are deemed to be supplied in terms of section 8 (5A); or
(u) the services are deemed to be supplied in terms of section 8 (5) by a designated entity in respect of any payment made
in terms of section 10 (1) (f) of the Skills Development Act, 1998 (Act 97 of 1998), to that designated entity; or
(v) the services relate to goods under warranty to the extent that the services are—
(i) provided in terms of that warranty;
(ii) supplied to the warrantor for consideration under that warranty given by the warrantor who is—
(aa) not a resident of the Republic;
(bb) not a vendor; and
(cc) outside the Republic at the time the services are rendered; and
(iii) in respect of goods that were subject to tax upon importation (in terms of section 7 (1) (b) of this Act); or
(w) a ‘municipal rate’ as de ned in section 1, is levied by a municipality; or
(x) the services are supplied by a vendor, being the owner of a horse, to the operator of a horse-racing event to the
extent of any consideration paid as a result of the successful participation of that horse in that event.
Section 11 (3) – Documentary proof to substantiate a vendor applying the zero rate
Section 20 – Tax invoices
(4) Except as the Commissioner may otherwise allow, and subject to this section, a tax invoice (full tax invoice) shall be in the currency of the Republic and shall contain the following particulars:
(a) The words ‘tax invoice’ in a prominent place;
(b) The name, address and VAT registration number of the supplier;
(c) The name, address, where the recipient is a registered vendor, the VAT registration number of the recipient;
(d) An individual serialised number and the date upon which the tax invoice is issued;
(e) Full and proper description of the goods (indicating, where applicable, that the goods are second-hand goods) or
services supplied;
(f) the quantity or volume of the goods or services supplied;
(g) either—
(i) the value of the supply, the amount of tax charged and the consideration for the supply; or
(ii) where the amount of tax charged is calculated by applying the tax fraction to the consideration, the consideration for the supply and either the amount of the tax charged, or a statement that it includes a charge
in respect of the tax and the rate at which the tax was charged:
Provided that the requirement that the consideration or the value of the supply, as the case may be, shall be in the currency of the Republic shall not apply to a supply that is charged with tax under section 11.
(5) Notwithstanding anything in subsection (4), where the consideration in money for a supply does not exceed R3 000, a tax invoice (abridged tax invoice) shall be in the currency of the Republic and shall contain the particulars speci ed in that subsection or the following particulars:
(a) The words ‘tax invoice’ in a prominent place;
Juta’s IndIrect tax 2016 325
Where a rate of zero per cent has been applied by any vendor under a provision of this section, the vendor shall obtain and retain such documentary proof substantiating the vendor’s entitlement to apply the said rate under that provision as is acceptable to the Commissioner.