Page 431 - Juta's Indirect Tax

IN 52 (3) VaLue-added tax act: InterPretatIOn nOtes IN 52 (3)
Question:
How will Vendor D implement the subsequent cut-off day of the 25th considering its previous tax period ended on the 5th of January?
Result:
The rst day of Vendor D’s January tax period will be the 6th day of January as provided for by the proviso (iii)(b) to section 27(6). This tax period will end on the 25th day of January. The rst day of the subsequent tax period will be the 26th day of January as provided for by the proviso (iii)(b) to section 27(6).
Annexure – The law
Section 27 of the VAT Act – Tax period
(1) For the purposes of this section—
‘Category A’ means the category of vendors whose tax periods are periods of two months ending on the last day of the months January, March, May, July, September and November of the calendar year;
‘Category B’ means the category of vendors whose tax periods are periods of two months ending on the last day of the months February, April, June, August, October and December of the calendar year;
‘Category C’ means the category of vendors whose tax periods are periods of one month ending on the last day of each of the 12 months of the calendar year;
‘Category D’ means the category of vendors whose tax periods are periods of six months ending on the last day of February and August of the calendar year or, where any vendor falling within this category makes written application therefore, on the last day of such other months as the Commissioner may approve;
‘Category E’ means the category of vendors whose tax periods are periods of twelve months ending on the last day of their year of assessment as de ned in section 1 of the Income Tax Act or, where any vendor falling within this category makes written application therefore, on the last day of such other months as the Commissioner may approve;
‘Category F’ means the category of vendors whose tax periods are periods of four months ending on the last day of the months June, October and February of the calendar year;
...
(6) The tax periods applicable under this Act to any vendor shall be the tax periods applicable to the Category within which the vendor falls as contemplated in this section: Provided that—
(i) the rst such period shall commence on the commencement date or, where any person becomes a vendor on a later date, such later date;
(ii) any tax period ending on the last day of a month, as applicable in respect of the relevant Category, may, instead of ending on such last day, end on a xed day approved by the Commissioner, which day shall fall within 10 days before or after such last day: Provided that the future tax period so approved by the Commissioner must be used by the vendor for a minimum period of 12 months, commencing from the tax period the change is made;
(iii) the rst day of any tax period of the vendor subsequent to the vendor’s rst tax period shall be the rst day following—
(a) the last day of the vendor’s preceding tax period; or
(b) the xed day as approved by the Commissioner in terms of paragraph (ii).
Juta’s IndIrect tax 2016 423