Page 423 - Juta's Indirect Tax

IN 49 (2) VALUE-ADDED TAX ACT: INTERPRETATION NOTES IN 49 (2)
(d) an amount equal to the tax fraction of any amount paid during the tax period by the supplier of the services contemplated in section 8 (13) as a prize or winnings to the recipient of such services: Provided that where the prize or winnings awarded constitutes either goods or services, the deduction must be limited to the input tax on the initial cost of acquiring those goods or services;
(dA) an amount equal to the tax fraction of any amount paid by the supplier of the services as contemplated in section 8(13) to the National Lottery Distribution Trust Fund, established by section 21 of the Lotteries Act, 1997 (Act No. 57 of 1997);
(e) an amount equal to the tax fraction of any amount of tax on totalizator transactions or tax on betting levied and paid for the bene t of any Provincial Revenue Fund by the supplier of the services contemplated in section 8(13);
(f) the amounts calculated in accordance with section 18(4) or (5) in relation to any goods or services applied during
the tax period as contemplated in that section;
(g) any amount of input tax in relation to any supply or other deduction in respect of which subsection (2) of this
section has operated to deny a deduction and the vendor has obtained, during the tax period, the prescribed
document or records in relation to that supply;
(h) in the case of a vendor who has supplied goods or services during that tax period otherwise than in terms of
section 18(2), an amount determined in accordance with the formula A × B × C,
in which formula—
“A” represents the tax fraction;
“B” represents the lesser of—
(i) (aa) the adjusted cost (including any tax forming part of such adjusted cost) to the vendor of the acquisition,
manufacture, assembly, construction or production of those goods or services: Provided that where the goods or services were acquired under a supply in respect of which the consideration in money was in terms of section 10(4) deemed to be the open market value of the supply, the adjusted cost of those goods or services shall be deemed to include such open market value to the extent that it exceeds the consideration in money for that supply; or
(bb) where the vendor was at some time after the acquisition of such goods or services deemed under section 18(4) to have been supplied with such goods or services, the amount which was represented by ‘B’ in the formula contemplated in section 18(4) when such goods or services were deemed to be supplied to the vendor; or
(cc) where the vendor was at some time after the acquisition of such goods or services required to make an adjustment contemplated in section 18(2) or (5), the amounts then represented by ‘A’ in the formula contemplated in section 10(9) or ‘B’ in the formula contemplated in section 18(5) respectively, in the most recent adjustment made in terms of section 18(2) or (5) by the vendor prior to such supply of goods or services; and
(ii) the open market value of the supply of those goods or services at the time those goods or services are deemed to be supplied; and
“C” represents the percentage that, immediately before the time of the supply, the use or application of the goods or services for the purpose other than that of making taxable supplies was of the total use or application of the goods or services:
Provided that— (i) ...
(ii) this subsection does not apply where—
(aa) such goods or services were acquired before 1 April 2005, or an input tax deduction in respect of that
acquisition was denied under proviso (iv) to section 18(4); and
(bb) the vendor is a public authority which registered prior to 1 April 2005, notwithstanding paragraph (b)
(i) of ‘enterprise’ in section 1 or a public entity listed in Part A or C of Schedule 3 to the Public Finance
Management Act, 1999 (Act No. 1 of 1999);
(iii) this subsection does not apply where such goods or services were acquired by a municipality before 1 July
2006, or an input tax deduction in respect of that acquisition was denied in terms of paragraph (v) of the
proviso to section 18(4);
(i) an amount equal to the tax fraction of any payment made by the vendor during the tax period in respect of the
redemption with him, or his agent, of the monetary value of any token, voucher or stamp contemplated in section 10(20), to a supplier of goods or services who has granted a discount on the surrender to him of such token, voucher or stamp by a recipient of a supply of goods or services if those goods or services are not charged with tax at the rate of zero per cent under section 11;
(j) (i)
in the case of a vendor who has, during the tax period, supplied a property in possession in the course or furtherance of his enterprise under a sale, an amount equal to the tax fraction of the lesser of—
(aa) the amount (excluding any amount of tax) received in respect of the sale of such property in possession
less any amount paid by the vendor in respect of the acquisition of such property in possession; and (bb) the amount of the unrecovered loan balance less any amount paid by the vendor in respect of the
acquisition of such property in possession:
Provided that no deduction shall be made in terms of this paragraph where the person in default is or will be held liable for payment of such lesser amount;
(ii) for the purposes of this paragraph—
(aa) ‘property in possession’ means xed property acquired by any vendor—
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