Page 419 - Juta's Indirect Tax

IN 49 (2) VALUE-ADDED TAX ACT: INTERPRETATION NOTES IN 49 (2)
G
Adjustments: Input tax in respect of a non-taxable portion of a supply which is or deemed to be a taxable supply of goods or services [s 16(3)(h)]
Goods or services acquired on a date falling within a period of 5 years immediately preceding the date of the adjustment:
• Goods or services
• Importation of goods
• Second-hand goods other than xed property
• Second-hand goods: Fixed property
• Second-hand goods: Shares in a share
block company
Tax invoice5 and proof of the open market value.
Records as set out under section 16(3)(a)(iii) [see Table A Item F].4
Records as set out under section 16(3)(a)(ii)(aa) [see Table A Item B].1
Records as set out under section 16(3)(a)(ii)(bb)(a) [see Table A Item C].
Records as set out under section 16(3)(a)(ii)(bb)(a) [see Table A Item D].
Goods or services acquired on a date prior to a period of 5 years immediately preceding the date of the adjustment
(a) Copy of the asset register;
(b) Copy of the nancial statements; and
(c) A calculation (using the formula provided in the VAT Act
[see the Annexure]) re ecting the determination of the amount of the deduction.
H
Redemption of tokens, vouchers or stamps [s 16(3)(i)]
(a) The redeemed token, voucher or stamp.
(b) Proof that the underlying supply of goods or services was
taxable at the rate of 14%.
I
Properties in possession [s 16(3)(j)] Unrecovered loan balance
Acquisition of the property by the vendor (e.g. at a sale in execution)
Subsequent sale of the property by the vendor
(a) Copy of the accounting records re ecting the outstanding balance or a certi cate of balance.
Note: No deduction will be allowed in instances where the person in default continues to be held liable for payment of the amount on which the deduction is calculated.
(a) A copy of the loan agreement.
(b) A copy of the court order authorising the sale in execution
and a copy of the writ of execution (not required in the
case of abandonment).
(c) A copy of the sale agreement as presented by the Sheriff’s
auctioneer at the sale in execution or the judgment or authorisation document in the case of an abandonment authorised by the Master of the High Court.
(d) Proof of payment for the acquisition and in respect of amounts paid to third parties and accounting entries to account for the purchase or ‘buy in’ price paid.
(e) Proof of registration in a deeds registry of the property in the name of the vendor.
(f) A declaration by the person whose property has been sold stating that the property had not been held or applied for the purpose of making taxable supplies.
(a) Copy of the deed of sale.
(b) Proof of payment received in respect of the subsequent
sale of the property by the vendor.
J
Deductions allowed in respect of pay- ments to suppliers which are not vendors in the small-scale farming scheme ap- proved by the Minister of Finance
[s 16(3)(k)]
(a) Copy of SARS’ ruling approving the methodology for determining the rate to be applied to the product together with the supporting calculation wherein the approved methodology was used to determine the amount to be deducted.
(b) The annual report by an independent auditor subsequent to the review of the supporting calculation by such auditor.
(c) Goods received note substantiating the product delivered
by the small grower.
(d) Proof of payment of the VAT to the small-scale farmer,
for example, receipt, bank statement or internet payment con rmation.
Juta’s IndIrect tax 2016 411