Page 422 - Juta's Indirect Tax

IN 49 (2) VALUE-ADDED TAX ACT: INTERPRETATION NOTES IN 49 (2)
(3) Subject to the provisions of subsection (2) of this section and the provisions of sections 15 and 17, the amount of tax payable in respect of a tax period shall be calculated by deducting from the sum of the amounts of output tax of the vendor which are attributable to that period, as determined under subsection (4), and the amounts (if any) received by the vendor during that period by way of refunds of tax charged under section 7(1)(b) and (c) and 7(3) (a), the following amounts, namely—
(a) in the case of a vendor who is in terms of section 15 required to account for tax payable on an invoice basis, the amounts of input tax—
(i) in respect of supplies of goods and services (not being supplies of second-hand goods to which paragraph (b) of the de nition of ‘input tax’ in section 1 applies and supplies referred to in subparagraph (iiA)) made to the vendor during that tax period;
(ii) (aa)
(bb)
subject to the provisions of item (bb), in respect of supplies of second-hand goods to which paragraph (b) of the de nition of ‘input tax’ in section 1 applies to the extent that payment of any consideration which has the effect of reducing or discharging any obligation (whether an existing obligation or an obligation which will arise in the future) relating to the purchase price for those supplies has been made during that tax period;
in respect of supplies of second-hand goods to which paragraph (b) of the de nition of “input tax” in
section 1 applies which consist of—
(A) xed property in respect of which the provisions of section 9(3)(d) apply if transfer of that xed
property was effected by registration in a deeds registry and the xed property was registered in the
name of the vendor that makes the deduction during that tax period;
(B) a share in a share block company which confers a right to or an interest in the use of immovable
property if a signed use agreement has been entered into between the company that operates the
share block scheme and a member of that company;
(iiA) in respect of taxable supplies made to the vendor under sales concluded on or after 6 June 1996 in respect of which the provisions of section 9(3)(d) apply (other than supplies in respect of which the provisions of section 10(4) apply), to the extent that payment of any consideration which has the effect of reducing or discharging any obligation (whether an existing obligation or an obligation which will arise in the future) relating to the purchase price for those supplies has been made during that tax period;
(iii) charged in terms of section 7(1)(b) in respect of goods imported into the Republic by the vendor and invoiced or paid, whichever is the earlier, during that tax period;
(iv) charged in terms of section 7(3)(a) in respect of goods subject to excise duty as contemplated in that section and invoiced or paid, whichever is the earlier, during that tax period;
(v) calculated in accordance with section 21(2)(b) or 21(7) or section 22(1), 22(1A) or 22(4), as applicable to the vendor:
Provided that this paragraph does not apply where a vendor acquires goods or services that are to be awarded as a prize or winnings and in respect of which that vendor quali es or will qualify for a deduction in terms of paragraph (d). (b) in the case of a vendor who is in terms of section 15 required to account for tax payable on a payments basis, the
amounts of input tax—
(i) in respect of supplies of goods and services made to the vendor in respect of which the provisions of section
9(1), (3)(a), (b) or (d) or (4) apply, to the extent that payments of any consideration which has the effect of reducing or discharging any obligation (whether an existing obligation or an obligation which will arise in the future) relating to the purchase price for those supplies have been made during that tax period.
(ii) charged in terms of section 7(1)(b) in respect of goods imported into the Republic by the vendor or in terms of section 7(3)(a) in respect of goods subject to excise duty as contemplated in that section and paid by the vendor during the tax period;
(iii) in respect of supplies of goods and services made to the vendor during the tax period, excluding supplies of goods and services to which subparagraph (i) of this paragraph applies;
(iv) calculated in accordance with section 21(2)(b) or 21(7), as applicable to the vendor, to the extent that payments in respect of the tax so calculated have been made during the tax period;
(v) calculated in accordance with section 22(1), as applicable to the vendor:
Provided that this paragraph does not apply where a vendor acquires goods or services that are to be awarded as a prize or winnings and in respect of which that vendor quali es or will qualify for a deduction in terms of paragraph (d); (c) an amount equal to the tax fraction of any payment made during the tax period by the vendor to indemnify another
person in terms of any contract of insurance: Provided that this paragraph—
(i) shall only apply where the supply of that contract of insurance is a taxable supply or where the supply of that
contract of insurance would have been a taxable supply if the time of performance of that supply had been
on or after the commencement date;
(ii) shall not apply where that payment is in respect of the supply of goods or services to the vendor or the
importation of any goods by the vendor;
(iii) shall not apply where the supply of that contract of insurance is a supply charged with tax at the rate of zero
per cent under section 11 and that other person is, at the time that that payment is made, not a vendor and not
a resident of the Republic;
(iv) shall not apply where that payment results from a supply of goods or services to that other person where
those goods are situated outside the Republic or those services are physically performed elsewhere than in the Republic at the time of that supply;
414 Juta’s IndIrect tax 2016