Page 471 - Juta's Indirect Tax

IN 70 VaLue-added tax act: InterPretatIOn nOtes IN 70
Provided that— ...
(iv) any activity carried on by a natural person essentially as a private or recreational pursuit or hobby or any activity carried on by a person other than a natural person which would, if it were carried on by a natural person, be carried on essentially as a private or recreational pursuit or hobby shall not be deemed to be the carrying on of an enterprise;
(v) any activity shall to the extent to which it involves the making of exempt supplies not be deemed to be the
carrying on of an enterprise;
...
(viii) the making of supplies by a constitutional institution listed in Schedule 1 of the Public Finance Management Act, 1999 (Act No. 1 of 1999), shall be deemed not to be the carrying on of an enterprise;
‘input tax’, in relation to a vendor, means—
tax charged under section 7 and payable in terms of that section by—
(a) a supplier on the supply of goods or services made by that supplier to the vendor; or (b) the vendor on the importation of goods by him; or
(c) the vendor under the provisions of section 7 (3);
...
‘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) 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;
(b) 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) the activities of any welfare organisation as respects activities referred to in the de nition of “welfare organisation” in this section;
(iii) ...
(iv) ...
(v) the activities of a foreign donor funded project; ...
Provided that— ...
(iv) any activity carried on by a natural person essentially as a private or recreational pursuit or hobby or any activity carried on by a person other than a natural person which would, if it were carried on by a natural person, be carried on essentially as a private or recreational pursuit or hobby shall not be deemed to be the carrying on of an enterprise;
(v) any activity shall to the extent to which it involves the making of exempt supplies not be deemed to be the
carrying on of an enterprise;
...
(viii) the making of supplies by a constitutional institution listed in Schedule 1 of the Public Finance Management Act, 1999 (Act No. 1 of 1999), shall be deemed not to be the carrying on of an enterprise;
‘input tax’, in relation to a vendor, means—
tax charged under section 7 and payable in terms of that section by—
(a) a supplier on the supply of goods or services made by that supplier to the vendor; or (b) the vendor on the importation of goods by him; or
(c) the vendor under the provisions of section 7 (3);
...
Juta’s IndIrect tax 2016 463