Page 448 - Juta's Indirect Tax

IN 57 VaLue-added tax act: InterPretatIOn nOtes IN 57
(i) such property was used by him prior to such supply mainly as his private residence; and
(ii) no deduction of any amount has been made by him under section 16(3) in respect of such property.
Section 9 — Time of supply
(1) For the purposes of this Act a supply of goods or services shall, except as otherwise provided in this Act, be deemed to take place at the time an invoice is issued by the supplier or the recipient in respect of that supply or the time any payment of consideration is received by the supplier in respect of that supply, whichever time is earlier.
Section 10 — Value of supply
(1) For the purposes of this Act the following provisions of this section shall apply for determining the value of any supply of goods or services.
(2) The value to be placed on any supply of goods or services shall, save as is otherwise provided in this section, be the amount of the consideration for such supply, as determined in accordance with the provisions of subsection (3), less so much of such amount as represents tax: Provided that—
(i) there shall be excluded from such consideration the value of any postage stamp as de ned in section 1 of the Post Of ce Act, 1958 (Act 44 of 1958), when used in the payment of consideration for any service supplied by the postal company as de ned in section 1 of the Post Of ce Act, 1958;
(ii) where the portion of the amount of the said consideration which represents tax is not accounted for separately by the vendor, the said portion shall be deemed to be an amount equal to the tax fraction of that consideration.
(3) For the purposes of this Act the amount of any consideration referred to in this section shall be—
(a) to the extent that such consideration is a consideration in money, the amount of the money; and
(b) to the extent that such consideration is not a consideration in money, the open market value of that consideration. Section 11 — Zero rating
(1) Where, but for this section, a supply of goods would be charged with tax at the rate referred to in section 7 (1), such supply of goods shall, subject to compliance with subsection (3) of this section, be charged with tax at the rate of zero per cent where—
(e) the supply is to a registered vendor of an enterprise or of a part of an enterprise which is capable of separate
operation, where the supplier and the recipient have agreed in writing that such enterprise or part, as the case may be, is disposed of as a going concern: Provided that—
(i) such enterprise or part, as the case may be, shall not be disposed of as a going concern unless—
(aa) such supplier and such recipient have, at the time of the conclusion of the agreement for the disposal of the enterprise or part, as the case may be, agreed in writing that such enterprise or part, as the case may
be, will be an income-earning activity on the date of transfer thereof; and
(bb) the assets which are necessary for carrying on such enterprise or part, as the case may be, are disposed of
by such supplier to such recipient; and
(cc) in respect of supplies on or after 1 January 2000, such supplier and such recipient have at the time of
the conclusion of the agreement for the disposal of such enterprise or part, as the case may be, agreed in
writing that the consideration agreed upon for that supply is inclusive of tax at the rate of zero per cent; (ii) where the enterprise or part, as the case may be, disposed of as a going concern has been carried on in, on or in relation to goods or services applied mainly for purposes of such enterprise or part, as the case may be, and partly for other purposes, such goods or services shall, where disposed of to such recipient, for the purposes of this paragraph and section 18A be deemed to form part of such enterprise or part, as the case may be,
notwithstanding the provisions of paragraph (v) of the proviso to the de nition of ‘enterprise’ in section 1; or
Section 16(3)(h) — Input tax deductions
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
in which formula—
‘A’ represents the tax fraction; ‘B’ represents the lesser of—
A × B × C,
(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;
440
Juta’s IndIrect tax 2016