Page 425 - Juta's Indirect Tax

IN 49 (2) VaLue-added tax act: InterPretatIOn nOtes IN 49 (2)
(e) a tax invoice or debit or credit note has been provided as contemplated in section 54(2), and a statement as contemplated in section 54(3)(a) is held by the vendor at the time a return in respect of the supply to the vendor is furnished; or
(f) the vendor, in any other case, is in possession of documentary proof, as is acceptable to the Commissioner, substantiating the vendor’s entitlement to the deduction at the time a return in respect of the deduction is furnished:
Provided that where a tax invoice or debit note or credit note in relation to that supply has been provided in accordance with this Act, or a bill of entry or other document has been delivered in accordance with the Customs and Excise Act, or the vendor is in possession of documentary proof substantiating any other deduction, as the case may be, the Commissioner may determine that no deduction for input tax in relation to that supply or importation shall be made unless that tax invoice or debit note or credit note or that bill of entry or other document is retained in accordance with the provisions of section 55(3).
(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)
in respect of supplies of second-hand goods to which paragraph (b) of the de nition of ‘input tax’ in section 1 applies (other than supplies in respect of which the provisions of subparagraph (bb) 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;
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 the acquisition of which transfer duty is, in terms of the
Transfer Duty Act, payable; or
(B) a share in a share block company in respect of the original issue or registration of transfer
of which stamp duty is, in terms of the Stamp Duties Act, payable,
if the full or nal amount of such transfer duty or stamp duty, as the case may be, has been paid during that tax period; (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: Provided that the amount referred to in paragraph (b) of the de nition of ‘input tax’ in section 1 in respect of a supply of second-hand goods which consist of—
(aa) xed property in respect of the acquisition of which transfer duty is, in terms of the Transfer Duty Act, payable; or
(bb) a share in a share block company in respect of the original issue or registration of transfer of which stamp duty is, in terms of the Stamp Duties Act, payable,
shall be deducted only after such transfer duty or stamp duty, as the case may be, has been paid;
(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;
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