Page 43 - Juta's Indirect Tax

s 11 VALUE-ADDED TAX ACT 89 OF 1991 s 12
(bb) forms part of a supply by the said person to a registered vendor and such services are supplied to the said person for purposes of such supply to the registered vendor; or
(iii) to the said person or any other person, other than in the circumstances contemplated in subparagraph (ii) (bb), if the said person or such other person is in the Republic at the time that the services are rendered; or
[Para. (o) substituted by s. 27 (1) (d) of Act 97 of 1993 and by s. 169 (1) (g) of Act 45 of 2003.]
(p) . . .
[Para. (p) added by GN 2695 of 8 November 1991 and by s. 17 (i) of Act 136 of 1992 and deleted by s. 169 (1) (h) of
Act 45 of 2003.]
(q) the services are deemed to be supplied in terms of section 8 (5B);
[Para. (q) added by s. 85 (1) (i) of Act 53 of 1999, substituted by s. 169 (1) (i) of Act 45 of 2003 and by s. 105 (f) of Act 31 of 2005, amended by s. 44 (1) (f) of Act 9 of 2006 and substituted by s. 81 (g) of Act 20 of 2006 and by s. 29 (a) of Act 36 of 2007.]
(r) the services comprise of the vocational training of employees (other than educational services contemplated in section 12 (h)) for the bene t of an employer who is not a resident of the Republic and who is not a vendor: Provided that this paragraph shall not apply where the supply is made to a person who is a resident of the Republic or a vendor; or
[Para. (r) added by s. 77 (b) of Act 30 of 2000 and substituted (and proviso added) by s. 132 (1) (d) of Taxation Laws Amendment Act, 2015 – date of commencement:
1 April 2016.]
(s) the services are deemed to be supplied to a public authority or municipality in terms of section 8 (23); or
[Para. (s) added by s. 169 (1) (k) of Act 45 of 2003 and substituted by s. 44 (1) (e) of Act 9 of 2006.]
(t) the services are deemed to be supplied in terms of section 8 (5A); or
[Para. (t) added by s. 98 (1) (f) of Act 32 of 2004.]
(u) the services are deemed to be supplied in terms of section 8 (5) by a designated entity in respect of any payment made in terms of section 10 (1) (f) of the Skills Development Act, 1998 (Act 97 of 1998), to
that designated entity; or
[Para. (u) added by s. 21 (1) (b) of Act 9 of 2005.]
(v) the services relate to goods under warranty to the
extent that the services are—
(i) provided in terms of that warranty;
(ii) supplied to the warrantor for consideration under that warranty given by the warrantor who is— (aa) not a resident of the Republic;
(bb) not a vendor; and
(cc) outside the Republic at the time the services are rendered; and
(w) (x)
(iii) in respect of goods that were subject to tax upon importation (in terms of section 7 (1) (b) of this Act); or
[Para. (v) added by s. 105 (h) of Act 31 of 2005.]
a ‘municipal rate’ as de ned in section 1, is levied by a municipality; or
[Para. (w) added by s. 44 (1) (g) of Act 9 of 2006.]
the services are supplied by a vendor, being the owner of a horse, to the operator of a horse-racing event to the extent of any consideration paid as a result of the successful participation of that horse in that event.
[Para. (x) added by s. 29 (b) of Act 36 of 2007.] [Sub-s. (2) amended by s. 28 (b) of Act 27 of 1997.]
(3) Where a rate of zero per cent has been applied by any vendor under the provisions of this section, the vendor shall obtain and retain such documentary proof substantiating the vendor’s entitlement to apply the said rate under those provisions as is acceptable to the Commissioner.
[Sub-s. (3) substituted by s. 169 (1) (l) of Act 45 of 2003 and by s. 108 (1) (b) of Act 60 of 2008.]
12 Exempt supplies
The supply of any of the following goods or services shall be exempt from the tax imposed under section 7 (1) (a):
(a) The supply of any nancial services, but excluding
the supply of nancial services which, but for this paragraph, would be charged with tax at the rate of zero per cent under section 11;
[Para. (a) substituted by GN 2695 of 8 November 1991, by s. 18 (a) of Act 136 of 1992, by s. 14 (a) of Act 20 of 1994 and by s. 22 (1) of Act 37 of 1996.]
(b) the supply by any association not for gain of any donated goods or services or any other goods made or manufactured by such association if at least 80 per cent of the value of the materials used in making or manufacturing such other goods consists of donated goods;
(c) the supply of—
(i) a dwelling under an agreement for the letting and
hiring thereof, and any ‘right of occupation’ as de ned in section 1 of the Housing Development Schemes for Retired Persons Act, 1988 (Act 65 of 1988);
[Sub-para. (i) substituted by s. 99 (a) of Act 32 of 2004.] (ii) lodging or board and lodging—
(aa) by the employer of the recipient (including an employer as de ned in paragraph 1 of the Fourth Schedule to the Income Tax Act), where the recipient is entitled to occupy the accommodation as a bene t of his or her of ce or employment and his or her right thereto is limited to the period of his or her employment or the term of his or her of ce or a period agreed upon by the supplier and the recipient;
(bb)by the employer of the recipient, where the employer operates a hostel or boarding establishment mainly for the bene t of the employees otherwise than for the purpose of making pro t; or
(cc) . . .
[Item (cc) deleted by s. 45 (1) (a) of Act 9 of 2006.]
[Para. (c) amended by s. 69 (1) of Act 19 of 2001 and substituted by s. 154 (1) (a) of Act 60 of 2001 and by s. 117 (a) of Act 74 of 2002.]
(d) the supply of leasehold land by way of letting (not being a grant or sale of the lease of that land) to the extent that that land is used or is to be used for the
Prelex
Wording of para. (r) in force until 1 April 2016
(r) the services comprise of the vocational training
of employees (other than educational services contemplated in section 12 (h)) for an employer who is not a resident of the Republic and who is not a vendor; or
Pendlex
[NB: Para. (s) has been deleted by s. 132 (1) (e) of Taxation Laws Amendment Act, 2015, a provision that will come into operation on 1 April 2017.]
Juta’s IndIrect tax 2016
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VALUE-ADDED TAX ACT