Page 417 - Juta's Indirect Tax

IN 49 (2) VALUE-ADDED TAX ACT: INTERPRETATION NOTES IN 49 (2)
(d) The description of the goods.
(e) The quantity or volume of the goods.
(f) The consideration for the supply.
A declaration from the supplier stating whether the supply is a taxable supply or not.
In the event that the purchase or sale agreement does not con- tain the above information, the vendor must obtain and retain any other document containing the above information.
B
Second-hand goods: Shares in a share block company acquired under a non- taxable supply [s 16(3)(b)(i)]
Importation of goods [s 16(3)(b)(ii)]
Records as set out under section 16(3)(a)(ii)(bb)(a) [see Table A Item C].3
Records as set out under section 16(3)(a)(iii) [see Table A Item F].
C
Locally manufactured goods where the excise duty or environmental levy has not been included in the selling price
[s 16(3)(b)(ii)]
Records as set out under section 16(3)(a)(iv) [see Table A Item G].
D
Goods and services acquired under a tax- able supply
[s 16(3)(b)(iii)]
Tax invoice.5
E
Credit and debit notes [s 16(3)(b)(iv)]
Copy of the credit or debit note.5
F
Irrecoverable debts [s 16(3)(b)(v)]
(a) Accounting records re ecting the balance of the outstanding debt and amount of VAT written off.
(b) Proof that the VAT was charged and declared in a VAT return.
5.3 Special deductions against output tax
In instances where any of the documentation set out below cannot be obtained, the Commissioner may, in terms of section 16(2)(f), consider the circumstances of that vendor and allow alternative documentary proof to be obtained and retained by the vendor to allow a deduction speci ed in section 16(3)(c) to (n). In order for the Commissioner to consider this alternative documentary proof, the vendor must submit a written application to the Commissioner which may be submitted either by e-mail to VATRulings@sars.gov.za or by fax to 086 540 9390. The vendor must obtain a VAT ruling allowing the alternative documentary proof before making the deduction.
Table C – Special deductions against output tax
ITEM
DESCRIPTION OF SUPPLY
DOCUMENTARY PROOF REQUIRED
A
Indemnity payments [s 16(3)(c)]
(a) Copy of the original insurance contract including an electronic or voice-recorded copy where applicable.
(b) Proof that the supply of the contract of insurance is a
taxable supply, e.g. a copy of the insurance contract or the
tax invoice.
(c) Proof that the indemnity payment (in money) was made,
for example, payment advice, bank statement or internet payment con rmation.
Take note that a section 16(3)(c) deduction will not be al- lowed in the following circumstances:
Where goods are acquired by the insurer in order to reinstate or replace the goods insured. In this instance, if the insurer is in possession of a valid tax invoice, input tax may bededucted as contemplated in section 16(3)(a); or
Where the contract of insurance is subject to VAT at the rate of zero per cent and at the time that the indemnity payment is made, the person indemni ed is neither a
vendor nor a resident of the Republic; or
Where the indemnity payment results from a supply of goods or services to the insured and at the time of the supply, the goods are situated outside the Republic or the services are physically rendered outside the Republic.
Juta’s IndIrect tax 2016 409