Page 47 - Juta's Indirect Tax

s 14 VALUE-ADDED TAX ACT 89 OF 1991 s 15
purposes of the calculation of the tax in terms of section 14 and pay such tax to the Commissioner in accordance with section 28.
[Sub-para. (1) substituted by s. 28 (1) of Act 8 of 2010.]
(2) For the purposes of this Act, a supply of imported services shall be deemed to take place at the time an invoice is issued by the supplier or recipient in respect of that supply or the time any payment is made by the recipient in respect of that supply, whichever time is the earlier.
(3) For the purposes of this Act, the value to be placed on the supply of imported services shall, save as otherwise provided in this section, be the value of the consideration for the supply, as determined in terms of section 10 (3) or the open market value of the supply, whichever is the greater.
(4) Where a person carries on activities outside the Republic which do not form part of the activities of any enterprise carried on by him and in the course of such rst-mentioned activities services are rendered for the purposes of such enterprise which, if rendered by anybody other than the said person, would be imported services, such services shall for the purposes of section 7 (1) (c) be deemed to be imported services supplied and received by that person in respect of such enterprise.
(5) The tax chargeable in terms of section 7 (1) (c) shall not be payable in respect of—
(a) a supply which is chargeable with tax in terms of
section 7 (1) (a) at the rate provided in section 7;
(b) a supply which, if made in the Republic, would be charged with tax at the rate of zero per cent applicable in terms of section 11 or would be exempt from tax in
terms of section 12;
(c) a supply of an educational service by an educational
institution established in an export country which is regulated by an educational authority in that export country;
[Para. (c) added by s. 171 (1) of Act 45 of 2003.]
(d) a supply by a person of services as contemplated in terms of proviso (iii) (aa) to the de nition of
‘enterprise’ in section 1; or
[Para. (d) added by s. 101 (c) of Act 32 of 2004.]
(e) a supply of services of which the value in respect of
that supply does not exceed R100 per invoice.
[Para. (e) added by s. 136 (1) of Act 24 of 2011 – date of commencement: 10 January 2012. This paragraph applies in respect of services imported on or after that date.]
15 Accounting basis
(1) Except as hereinafter provided, every vendor shall account for tax payable on an invoice basis for the purposes of section 16.
(2) Subject to the provisions of subsections (2A) and (3), the Commissioner may, on application in writing by a vendor, direct that the vendor account for the tax payable on a payments basis for the purposes of section 16 with effect from the vendor’s registration in terms of this Act or, where he has accounted for tax payable on an invoice basis prior to making an application under this subsection, from the commencement of the tax period immediately following the tax period during which that direction is made by the Commissioner (hereinafter referred to as the changeover period), if—
(a) the vendor is—
(i) a public authority;
(ii) any water board or any other institution which
has powers similar to those of any such board listed in Part B of Schedule 3 to the Public
Finance Management Act, 1999 (Act 1 of 1999), which would have complied with the de nition of ‘local authority’ in section 1 prior to the deletion of that de nition by section 40 (1) (i) of the Small Business Amnesty and Taxation Laws Act, 2006 (Act 9 of 2006);
(iii) ...
[Sub-para. (iii) deleted by s. 134 (1) (a) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 April 2016.]
(iv) a ‘municipal entity’ as de ned in section 1 of the Local Government: Municipal Systems Act, 2000 (Act 32 of 2000), where that municipal entity supplies—
(aa) electricity, gas or water; or
(bb)the services consisting of the drainage,
removal or disposal of sewage or garbage;
(v) a municipality;
(vi) an association not for gain;
(vii) carrying on an enterprise as contemplated in
paragraph (b) (vi) of the definition of ’enterprise’
in section 1; or
[Sub-para. (vii) added by s. 172 (1) (b) of Act 31 of 2013 – date of commencement: 1 April 2014.]
(viii) the South African Broadcasting Corporation Limited contemplated in section 8A of the Broadcasting Act, 1999 (Act 4 of 1999); or
[Sub-para. (viii) added by s. 134 (1) (c) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 April 2016.]
[Para. (a) substituted by s. 46 (1) (a) of Act 9 of 2006, by s. 37 (1) of Act 21 of 2006 and by s. 13 (1) of Act 9 of 2007.]
(b) the vendor is a natural person (other than the trustee of a trust fund) or an unincorporated body of persons of which all the members are natural persons, and—
(i) the total value of the vendor’s taxable supplies in the period of 12 months ending at the end of any tax period has not exceeded R2,5 million; or
[Sub-para. (i) substituted by GN 2695 of 8 November 1991 and by s. 20 of Act 136 of 1992 and amended by s. 1 (6) of Act 3 of 2008.]
(ii) the total value of the vendor’s taxable supplies in the period of 12 months beginning on the rst day of any month is not likely to exceed the amount speci ed in subparagraph (i):
[Para. (b) amended by s. 90 (a) of Act 30 of 1998.] Provided that the provisions of this Act relating to the
determination of the value of any supply of goods or services, whether such supply is made before or on or
Juta’s IndIrect tax 2016
39
Prelex
Wording of sub-para. (iii) in force until 1 April 2016
(iii) a regional electricity distributor established after 30 June 2005 that is—
(aa) a public entity regulated under the Public
Finance Management Act, 1999 (Act 1 of
1999);
(bb) a wholly owned subsidiary or entity of
that public entity if the operations of the subsidiary or entity are ancillary or complementary to the operations of that public entity; or
(cc) a company contemplated in paragraph (a) of the de nition of ‘company’ in section 1 of the Income Tax Act, which is wholly owned by one or more municipalities;
VALUE-ADDED TAX ACT