Page 470 - Juta's Indirect Tax

IN 70 VaLue-added tax act: InterPretatIOn nOtes IN 70 on +27 86 540 9390. The application should be headed ‘Application for a VAT Class Ruling’ or ‘Application for a VAT
Ruling’ and it must meet all the requirements as set out in section 79 of the TA Act.
Legal and Policy Division
SOUTH AFRICAN REVENUE SERVICE32
Annexure A – The law Section 1(1) – De nitions
‘association not for gain’ means—
(a) any religious institution of a public character; or
(b) any other society, association or organisation, whether incorporated or not (other than an educational institution
in respect of which the provisions of paragraph (c) apply), which—
(i) is carried on otherwise than for the purposes of pro t or gain to any proprietor, member or shareholder; and
(ii) is, in terms of its memorandum, articles of association, written rules or other document constituting or governing the activities of that society, association or organisation—
(aa) required to utilize any property or income solely in the furtherance of its aims and objects; and
(bb) prohibited from transferring any portion thereof directly or indirectly in any manner whatsoever so
as to pro t any person other than by way of the payment in good faith of reasonable remuneration to any of cer or employee of the society, association or organisation for any services actually rendered to such society, association or organisation; and
(cc) upon the winding-up or liquidation of such society, association or organisation, obliged to give or transfer its assets remaining after the satisfaction of its liabilities to some other society, association or organisation with objects similar to those of the said society, association or organisation; or
(c) any educational institution of a public character, whether incorporated or not, which—
(i) is carried on otherwise than for the purposes of pro t or gain to any proprietor, member or shareholder; and (ii) is, in terms of its memorandum, articles of association, written rules or other document constituting or
governing the activities of that educational institution—
(aa) required to utilize any property or income solely in the furtherance of its aims and objects; and
(bb) prohibited from transferring any portion thereof directly or indirectly in any manner whatsoever so as
to pro t any person other than by way of the payment in good faith of reasonable remuneration to any
of cer or employee of the educational institution for any services actually rendered to such institution; ‘consideration’, in relation to the supply of goods or services to any person, includes any payment made or to be made (including any deposit on any returnable container and tax), whether in money or otherwise, or any act or forbearance, whether or not voluntary, in respect of, in response to, or for the inducement of, the supply of any goods or services, whether by that person or by any other person, but does not include any payment made by any person as a donation to any association not for gain: Provided that a deposit (other than a deposit on a returnable container), whether refundable or not, given in respect of a supply of goods or services shall not be considered as payment made for the supply unless and until the supplier applies the deposit as consideration for the supply or such deposit is forfeited;
‘donation’ means a payment whether in money or otherwise voluntarily made to any association not for gain for the carrying on or the carrying out of the purposes of that association and in respect of which no identi able direct valuable bene t arises or may arise in the form of a supply of goods or services to the person making that payment or in the form of a supply of goods or services to any other person who is a connected person in relation to the person making the payment, but does not include any payment made by a public authority or a municipality;
‘enterprise’ means—
(a)
(b)
in the case of any vendor, any enterprise or activity which is carried on continuously or regularly by any person in the Republic or partly in the Republic and in the course or furtherance of which goods or services are supplied to any other person for a consideration, whether or not for pro t, including any enterprise or activity carried on in the form of a commercial, nancial, industrial, mining, farming, shing, municipal or professional concern or any other concern of a continuing nature or in the form of an association or club;
without limiting the applicability of paragraph (a) in respect of any activity carried on in the form of a commercial, nancial, industrial, mining, farming, shing or professional concern—
(i) the making of supplies by any public authority of goods or services which the Minister, having regard to the circumstances of the case, is satis ed are of the same kind or are similar to taxable supplies of goods or services which are or might be made by any person other than such public authority in the course or furtherance of any enterprise, if the Commissioner, in pursuance of a decision of the Minister under this subparagraph, has noti ed such public authority that its supplies of such goods or services are to be treated as supplies made in the course or furtherance of an enterprise;
(ii)
(iii) (iv) (v)
the activities of any welfare organisation as respects activities referred to in the de nition of “welfare organisation” in this section;
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the activities of a foreign donor funded project; ...
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Juta’s IndIrect tax 2016