Page 38 - Juta's Indirect Tax

s 10 VALUE-ADDED TAX ACT 89 OF 1991 s 11
purpose of such entertainment, the value of such supply shall be deemed to be nil.
(21A) Where any supply of medical or dental services or other goods or services is made as contemplated in section 17 (2) (d) by a scheme referred to in that section, the value of such supply shall be deemed to be nil.
[Sub-s. (21A) inserted by GN 2695 of 8 November 1991 and by s. 16 (1) (c) of Act 136 of 1992 and substituted by s. 12 (b) of Act 20 of 1994.]
(22) Where a taxable supply is not the only matter to which a consideration relates, the supply shall be deemed to be for such part of the consideration as is properly attributable to it.
(22A) Where any supply is made which comprises the management of a superannuation scheme as contemplated in section 2 (1) (i), the consideration in money for such supply shall be deemed to be the greater of the cost of making such supply or any consideration for such supply.
[Sub-s. (22A) inserted by s. 21 (1) (b) of Act 37 of 1996.] (22B) Where any supply of goods is deemed to be made as contemplated in section 8 (20), the consideration in money for such supply shall be deemed to be the total amount of the value placed on the importation of the goods in terms of section 13 (2) and the amount of tax levied on
the importation in terms of section 7 (1) (b).
[Sub-s. (22B) inserted by s. 27 (b) of Act 27 of 1997.]
(23) Save as otherwise provided in this section, where any supply is made for no consideration the value of that supply shall be deemed to be nil.
(24) Where a game viewing vehicle or a hearse is deemed to be supplied by a vendor in terms of section 8 (14) (b) or (14A) the supply shall be deemed to be made for a consideration in money equal to the open market value, of that game viewing vehicle or hearse.
[Sub-s. (24) added by s. 97 of Act 32 of 2004.]
(25) Where any goods are deemed by section 8 (24) to be supplied to any person, the consideration in money shall be deemed to be the open market value of those goods on the date contemplated in section 9 (11).
[Sub-s. (25) added by s. 104 of Act 31 of 2005.]
(26) Where a service is deemed to be supplied under section 8 (27), the consideration in money for the supply shall be deemed to be the excess amount contemplated in that section.
[Sub-s. (26) added by s. 80 of Act 20 of 2006.]
(27) Where any supply of goods or services is deemed to be made in terms of section 8 (19), the value of such supply shall be deemed to be nil.
[Sub-s. (27) added by s. 168 (1) (b) of Act 31 of 2013 – date of commencement: 1 April 2014; the added subsection applies in respect of goods or services supplied on or after that date.]
11 Zero rating
(1) Where, but for this section, a supply of goods would be charged with tax at the rate referred to in section 7 (1), such supply of goods shall, subject to compliance with subsection (3) of this section, be charged with tax at the rate of zero per cent where—
(a) the supplier has supplied the goods (being movable
goods) in terms of a sale or instalment credit agreement and—
(i) the supplier has exported the goods in the circumstances contemplated in paragraph (a), (b) or (c) of the de nition of ‘exported’ in section 1; or
(ii) the goods have been exported by the recipient and the supplier has elected to supply the goods at the zero rate as contemplated in Part 2 of the regulation referred to in paragraph (d) of the de nition of ‘exported’ in section 1: Provided that—
[Words preceding the proviso substituted by s. 132 (1) (a) of Taxation Laws Amendment Act, 2015 (‘an export incentive scheme’ replaced by ‘the regulation’) – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
(aa) where a supplier has supplied the goods to the recipient in the Republic otherwise than in terms of this subparagraph, such supply shall not be charged with tax at the rate of zero per cent; and
(bb) where the goods have been removed from the Republic by the recipient in accordance with the regulation referred to in paragraph (d) of the de nition of ‘exported’ in section 1, such tax shall be refunded to the recipient in accordance with the provisions of section 44 (9); or
[Para. (bb) substituted by s. 132 (1) (b) of Taxation Laws Amendment Act, 2015 (‘provisions of an export incentive scheme’ replaced by ‘regulation’) – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
[NB: Para. (a) has been amended by s. 105 (1) (a), (b), (c) and (d) of Act 35 of 2007, provisions which will be put into operation by proclamation. See Pendlex below.]
Pendlex
(a) the supplier has supplied the goods (being movable goods) in terms of a sale or instalment credit agreement and the goods have been exported—
(i) as contemplated in the regulation referred to in the de nition of ‘exported’ in section 1; or
(ii) by the recipient and the supplier has elected to supply the goods at the zero rate as contemplated in the regulation referred to in the de nition of ‘exported’ in section 1: Provided that—
(aa) where a supplier has supplied the goods to the recipient in the Republic otherwise than in terms of this subparagraph, such supply shall not be charged with tax at the rate of zero per cent; and
(bb) where the goods have been removed from the Republic by the recipient in accordance with the provisions of the regulation referred to in the de nition of ‘exported’ in section 1, such tax shall be refunded to the recipient in accordance with the provisions of section 44 (9); or
(b) the goods have been supplied in the course of repairing, renovating, modifying or treating any goods to which subsection (2) (g) (ii) or (iv) refers and the goods supplied—
(c)
(i) are wrought into, af xed to, attached to or otherwise form part of those other goods; or
(ii) being consumable goods, become unusable or
worthless as a direct result of being used in that repair, renovation, modi cation or treatment process; or
[Para. (b) amended by s. 27 (b) of Act 136 of 1991.]
the goods (being movable goods) are supplied to a lessee or other person under a rental agreement, charter parry or agreement for chartering, if the goods are used exclusively in an export country or by a customs controlled area enterprise or an IDZ
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Juta’s IndIrect tax 2016