Page 391 - Juta's Indirect Tax

IN 40 (2) VaLue-added tax act: InterPretatIOn nOtes IN 40 (2) Section 7(1)(a) and (b) – Imposition of VAT
(1) Subject to the exemptions, exceptions, deductions and adjustments provided for in this Act, there shall be levied and paid for the bene t of the National Revenue Fund a tax, to be known as the value-added tax—
(a) on the supply by any vendor of goods or services supplied by him on or after the commencement date in the
course or furtherance of any enterprise carried on by him;
(b) on the importation of any goods into the Republic by any person on or after the commencement date; and
.. .
calculated at the rate of 14 per cent on the value of the supply concerned or the importation, as the case may be.
Section 8(24) – Deemed supplies
Section 9(11) – Time of supply
Section 10(25) – Value of supply
Sections 11(1)(a)(i) and (a)(ii), (c), (m), (mA) and (u) – Zero-rating (goods)
(24) For the purposes of this Act, a vendor, being a customs controlled area enterprise or an IDZ Operator, shall be deemed to supply goods in the course or furtherance of an enterprise where movable goods are temporarily removed from a place in a customs controlled area to a place outside the customs controlled area, situated in the Republic, if those goods are not returned to the customs controlled area within 30 days of its removal, or within a period arranged in writing with the Controller.
(11) Where any supply of goods is deemed to be made as contemplated in s 8(24), that supply shall be deemed to take place on the last day of the applicable period as contemplated in s 8(24).
(25) Where any goods are deemed by s 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 s 9(11).
(1) Where, but for this section, a supply of goods would be charged with tax at the rate referred to in s 7(1), such supply of goods shall, subject to compliance with sub-s (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 para (a), (b) or (c) of the de nition of ‘exported’ in s 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 an export incentive scheme referred to in para (d) of the de nition of ‘exported’ in s 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 an export incentive scheme referred to in para (d) of the de nition of ‘exported’ in s 1, such tax shall be
refunded to the recipient in accordance with the provisions of s 44(9); or
(c) the goods (being movable goods) are supplied to a lessee or other person under a rental agreement, charter party or agreement for chartering, if the goods are used exclusively in an export country or by a customs controlled area enterprise or an IDZ Operator in a customs controlled area: Provided that this subsection shall not apply where a ‘motor car’ as de ned in s 1 is supplied to a person located in a customs controlled area; or
(m) a vendor supplies movable goods, (excluding any ‘motor car’ as de ned in s 1), in terms of a sale or instalment credit agreement to a customs controlled area enterprise or an IDZ Operator in a customs controlled area and those goods are physically delivered to that customs controlled area enterprise or IDZ Operator in a customs controlled area either—
(i) by the supplier or
(ii) by a VAT registered cartage contractor, whose main activity is that of transporting goods and who is engaged
by the supplier to deliver the goods and that supplier is liable for the full cost relating to that delivery; or
(ma)a vendor supplies xed property situated in a customs controlled area to a customs controlled area enterprise or an IDZ Operator under any agreement of sale or letting or any other agreement under which the use or permission to use such xed property is granted; or
(u) the supply of 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; or
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