Page 434 - Juta's Indirect Tax

IN 56 (2) VaLue-added tax act: InterPretatIOn nOtes IN 56 (2) Annexure A – The law
Section 20 – Tax invoices
(1) Except as otherwise provided in this section, a supplier, being a registered vendor, making a taxable supply (other than a supply contemplated in section 8(10)) to a recipient, must within 21 days of the date of that supply issue a tax invoice containing such particulars as are speci ed in this section: Provided that—
(i) it shall not be lawful to issue more than one tax invoice for each taxable supply;
(ii) if a vendor claims to have lost the original tax invoice, the supplier or the recipient, as the case may be, may
provide a copy clearly marked ‘copy’.
(2) Where a recipient, being a registered vendor, creates a document containing the particulars speci ed in this
section and purporting to be a tax invoice in respect of a taxable supply of goods or services made to the recipient by a supplier, being a registered vendor, that document shall be deemed to be a tax invoice provided by the supplier under subsection (1) of this section where—
(a) the Commissioner has granted prior approval for the issue of such documents by a recipient or recipients of a
speci ed class in relation to the taxable supplies or taxable supplies of a speci ed category to which the documents
relate; and
(b) the supplier and the recipient agree that the supplier shall not issue a tax invoice in respect of any taxable supply
to which this subsection applies; and
(c) such document is provided to the supplier and a copy thereof is retained by the recipient:
Provided that where a tax invoice is issued in accordance with this subsection, any tax invoice issued by the supplier in respect of that taxable supply shall be deemed not to be a tax invoice for the purposes of this Act.
(3) ...
(4) Except as the Commissioner may otherwise allow, and subject to this section, a tax invoice (full tax invoice) shall be in the currency of the Republic and shall contain the following particulars:
(a) The words ‘tax invoice’ in a prominent place;
(b) the name, address and VAT registration number of the supplier;
(c) the name, address and, where the recipient is a registered vendor, the VAT registration number of the recipient; (d) an individual serialized number and the date upon which the tax invoice is issued;
(e) full and proper description of the goods (indicating, where applicable, that the goods are second-hand goods) or
services supplied;
(f) the quantity or volume of the goods or services supplied; (g) either—
(i) the value of the supply, the amount of tax charged and the consideration for the supply; or
(ii) where the amount of tax charged is calculated by applying the tax fraction to the consideration, the consideration for the supply and either the amount of the tax charged, or a statement that it includes a charge
in respect of the tax and the rate at which the tax was charged:
Provided that the requirement that the consideration or the value of the supply, as the case may be, shall be in the currency of the Republic shall not apply to a supply that is charged with tax under section 11.
(5) Notwithstanding anything in subsection (4), where the consideration in money for a supply does not exceed R5 000, a tax invoice (abridged tax invoice) shall be in the currency of the Republic and shall contain the particulars speci ed in that subsection or the following particulars:
(a) The words ‘tax invoice’ in a prominent place;
(b) the name, address and VAT registration number of the supplier;
(c) an individual serialized number and the date upon which the tax invoice is issued;
(d) a description of the goods (indicating, where applicable, that the goods are second-hand goods) or services
supplied; (e) either—
(i) the value of the supply, the amount of tax charged and the consideration for the supply; or
(ii) where the amount of tax charged is calculated by applying the tax fraction to the consideration, the consideration for the supply and either the amount of the tax charged, or a statement that it includes a charge
in respect of the tax and the rate at which the tax was charged:
Provided that this subsection shall not apply to a supply that is charged with tax under section 11.
Section 21 – Credit and debit notes
(1) This section shall apply where, in relation to the supply of goods or services by any registered vendor—
(a) that supply has been cancelled; or
(b) the nature of that supply has been fundamentally varied or altered; or
(c) the previously agreed consideration for that supply has been altered by agreement with the recipient, whether due
to the offer of a discount or for any other reason; or
(d) the goods or services or part of the goods or services supplied have been returned to the supplier, including the
return to a vendor of a returnable container, the vendor in such case being deemed for the purposes of this Act to have made the supply of the container in respect of which the deposit was charged, whether the supply was made by him or any other person; or
426 Juta’s IndIrect tax 2016