Page 405 - Juta's Indirect Tax

IN 42 VaLue-added tax act: InterPretatIOn nOtes IN 42
(c) lodging or board and lodging in a hospice;
‘export country’ means any country other than the Republic and includes any place which is not situated in the
Republic: Provided that the President may by notice in the Gazette determine that a speci c country or territory shall from a date and to the extent indicated in the notice, be deemed not to be an export country;
‘exported’, in relation to any movable goods supplied by any vendor under a sale or an instalment credit agreement, means—
(a) consigned or delivered by the vendor to the recipient at an address in an export country as evidenced by documentary proof acceptable to the Commissioner; or
(b) delivered by the vendor to the owner or charterer of any foreign-going ship contemplated in paragraph (a) of the de nition of ‘foreign-going ship’ or to a foreign-going aircraft when such ship or aircraft is going to a destination in an export country and such goods are for use or consumption in such ship or aircraft, as the case may be; or
(c) delivered by the vendor to the owner or charterer of any foreign-going ship contemplated in paragraph (b) of the de nition of ‘foreign-going ship’ for use in such ship; or
(d) removed from the Republic by the recipient for conveyance to an export country in accordance with the provisions of an export incentive scheme approved by the Minister;
‘goods’ means corporeal movable things, xed property and any real right in any such thing or xed property, but excluding—
(a) money;
(b) any right under a mortgage bond or pledge of any such thing or xed property; and
(c) any stamp, form or card which has a money value and has been sold or issued by the State for the payment of any tax or duty levied under any Act of Parliament, except when subsequent to its original sale or issue it is disposed of or imported as a collector’s piece or investment article;
‘Republic’, in the geographical sense, means the territory of the Republic of South Africa and includes the territorial waters, the contiguous zone and the continental shelf referred to respectively in sections 4, 5 and 8 of the Maritime Zones Act, 1994 (Act 15 of 1994);
‘services’ means anything done or to be done, including the granting, assignment, cession or surrender of any right or the making available of any facility or advantage, but excluding a supply of goods, money or any stamp, form or card contemplated in paragraph (c) of the de nition of ‘goods’;
‘supplier’, in relation to any supply of goods or services, means the person supplying the goods or services;
Section 7 — Imposition of value-added tax
(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
(c) on the supply of any imported services by any person on or after the commencement date,
calculated at the rate of 14 per cent on the value of the supply concerned or the importation, as the case may be.
Section 11 — Zero-rating
(2) Where, but for this section, a supply of services would be charged with tax at the rate referred to in section 7 (1), such supply of services shall, subject to compliance with subsection (3) of this section, be charged with tax at the rate of zero per cent where—
(a) the services (not being ancillary transport services) comprise the transport of passengers or goods—
(i) from a place outside the Republic to another place outside the Republic; or (ii) from a place in the Republic to a place in an export country; or
(iii) from a place in an export country to a place in the Republic; or
(b) the services comprise the transport of passengers from a place in the Republic to another place in the Republic to the extent that that transport is by aircraft and constitutes ‘international carriage’ as de ned in Article 1 of the Convention set out in the Schedule to the Carriage by Air Act, 1946 (Act 17 of 1946); or
(c) ...
(d) the services comprise the insuring or the arranging of the insurance or the arranging of the transport of passengers
or goods to which any provision of paragraph (a), (b) or (c) applies; or
...
(l) the services are supplied to a person who is not a resident of the Republic, not being services which are supplied
directly—
(i) in connection with land or any improvement 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 exported to the said person 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 circumstances contemplated in subparagraph (ii) (bb), if
the said person or such other person is in the Republic at the time the services are rendered,
and not being services which are the acceptance by any person of an obligation to refrain from carrying on any enterprise, to the extent that the carrying on of that enterprise would have occurred within the Republic; or
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