Page 37 - Juta's Indirect Tax

s 10 VALUE-ADDED TAX ACT 89 OF 1991 s 10
was applicable in the period immediately preceding
the 12 month period contemplated in ‘C’; and
‘C’ represents the percentage that, during the 12 month period during which the decrease in use or application of the goods or services is deemed to take place, the use or application of the goods or services for the purposes of making taxable supplies (in respect of which, if such goods or services had been acquired at the time of such use or application, a deduction of input tax would not have been denied in terms of section 17 (2) (a)), was of the total use or application of the goods: Provided that where the percentage contemplated in ‘B’ does not exceed the said percentage by more than 10 per cent of the total use or application, the said percentage shall be deemed to
be the percentage determined in ‘B’.
[Sub-s. (9) amended by s. 26 (c) of Act 136 of 1991 and by s. 27 (a) of Act 27 of 1997.]
(10) Where domestic goods and services are supplied at an all-inclusive charge in any enterprise supplying commercial accommodation for an unbroken period exceeding 28 days, the consideration in money is deemed to be 60 per cent of the all-inclusive charge.
[Sub-s. (10) amended by s. 68 (1) of Act 19 of 2001 and substituted by s. 152 (1) (a) of Act 60 of 2001.]
(11) Where a service is under section 8 (4) (b) deemed to be supplied, the consideration in money for the supply shall be deemed to be an amount equal to the amount retained or recovered as contemplated in that section.
(12) Where any supply of goods is a supply which would, but for the proviso to section 11 (1), be charged with tax at the rate of zero per cent, the consideration in money for that supply shall be deemed to be an amount equal to the purchase price of those goods to the supplier: Provided that in any case where the deduction of input tax referred to in that proviso has been made by any other person (where that supplier and that other person are connected persons), the consideration in money for that supply shall be deemed to be an amount equal to the greater of the purchase price of those goods to that supplier and the purchase price of those goods to that other person: Provided further that for the purposes of this subsection, the purchase price of any goods shall not be reduced by any amount of input tax deducted under section 16 (3) by the supplier or, as the case may be, any other person where the supplier and that other person are connected persons.
(13) Where goods or services are deemed to be supplied by a vendor under section 18 (3), the consideration in money for the supply shall be deemed to be an amount equal to the cash equivalent of the bene t or advantage granted to the employee or of ce holder, as contemplated in section 9 (7): Provided that where such bene t or advantage consists of the right to use a motor vehicle as contemplated in paragraph 2 (b) of the Seventh Schedule to the Income Tax Act, the consideration in money for the supply shall be deemed to be the amount determined in the manner* prescribed by the Minister in the Gazette for the category of motor vehicle used.
[Sub-s. (13) amended by s. 26 (d) of Act 136 of 1991, by GN 2695 of 8 November 1991 and by s. 16 (1) (b) of Act 136 of 1992.]
(14) Where services are or are deemed by section 8 (5) to be supplied to any public authority or municipality by any vendor the consideration in money for such supply shall be deemed to be the amount of any payment made from time to time by the public authority or municipality concerned to or on behalf of the vendor as contemplated in the said section.
(15) . . .
[Sub-s. (15) substituted by s. 26 (e) of Act 136 of 1991 and deleted by s. 43 (1) (b) of Act 9 of 2006.]
(16) Where a supply of goods is deemed by section 8 (10) to be made by a debtor, the consideration in money for that supply shall be deemed to be an amount equal to the balance of the cash value of the goods (being the cash value thereof applied under subsection (6) in respect of the supply of the goods to the debtor under the said agreement) which has not been recovered on the date on which the supply of the goods by the debtor is deemed by section 9 (8) to be made: Provided that the said balance shall be deemed to be the amount remaining after deducting from the cash value so much of the sum of the payments made by the debtor under the said agreement as, on the basis of an apportionment in accordance with the rights and obligations of the parties to the said instalment credit agreement, may properly be regarded as having been made in respect of the cash value.
[Words preceding the proviso to sub-s. (16) substituted by s. 168 (1) (a) of Act 31 of 2013 – date of commencement: 1 April 2014; the substituted wording applies in respect of goods surrendered on or after that date.]
(17) Where a service is deemed by section 8 (13) to be supplied to any person, the consideration in money for such supply shall be deemed to be the amount that is received in respect of the bet.
(17A) Where a service is deemed by section 8 (13A) to be supplied to any vendor, the consideration in money for such supply shall be deemed to be the amount that is received as a prize or winnings.
[Sub-s. (17A) inserted by s. 22 of Act 46 of 1996.]
(18) Where a right to receive goods or services to the extent of a monetary value stated on any token, voucher or stamp (other than a postage stamp as de ned in section 1 of the Postal Services Act, 1998, and any token, voucher or stamp contemplated in subsection (19)) is granted for a consideration in money, the supply of such token, voucher or stamp is disregarded for the purposes of this Act, except to the extent (if any) that such consideration exceeds such monetary value.
[Sub-s. (18) substituted by s. 152 (1) (b) of Act 60 of 2001.] (19) Where any token, voucher or stamp (other than a postage stamp as de ned in section 1 of the Postal Services Act, 1998) is issued for a consideration in money and the holder thereof is entitled on the surrender thereof to receive goods or services speci ed on such token, voucher or stamp or which by usage or arrangement entitles the holder to speci ed goods or services, without any further charge, the value of the supply of the goods or services made upon the surrender of such token, voucher or stamp is regarded as nil.
[Sub-s. (19) substituted by s. 152 (c) of Act 60 of 2001.] (20) Where any token, voucher or stamp is issued by any vendor for no consideration and the holder thereof is entitled on surrender thereof to another person, being the supplier of goods or services, to a discount on the price of goods or services supplied to the holder, the consideration in money for the supply of such goods or services shall be deemed to include the monetary value stated on such token, voucher or stamp: Provided that such monetary
value shall be deemed to include tax.
[Sub-s. (20) substituted by s. 12 (a) of Act 20 of 1994.]
(21) Where any supply of entertainment is made by a vendor and in terms of section 17 no deduction of input tax was made in terms of section 16 (3) in respect of the acquisition by the vendor of goods or services for the
[Sub-s. (14) substituted by s. 43 (1) (a) of Act 9 of 2006.]
*Manner prescribed — GN 2835 in GG 13651 of 22 November 1991
Juta’s IndIrect tax 2016 29
VALUE-ADDED TAX ACT