Page 479 - Juta's Indirect Tax

IN 81 (2) VaLue-added tax act: InterPretatIOn nOtes
IN 82
Section 7 – Imposition of value-added tax
(1) Subject to the exemptions, exceptions, deductions and adjustments provided for in this Act, there shall be levied and paid for the bene t of the National Revenue Fund a tax, to be known as the value-added tax—
(a) on the supply by any vendor of goods or services supplied by him on or after the commencement date in the
course or furtherance of any enterprise carried on by him;
(b) on the importation of any goods into the Republic by any person on or after the commencement date; and
(c) on the supply of any imported services by any person on or after the commencement date,
calculated at the rate of 14 per cent on the value of the supply concerned or the importation, as the case may be.
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 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—
(a) the supplier has supplied the goods (being movable goods) in terms of a sale or instalment credit agreement and—
(i) the supplier has exported the goods in the circumstances contemplated in paragraph (a), (b) or (c) of the de nition of ‘exported’ in section 1; or
(ii) the goods have been exported by the recipient and the supplier has elected to supply the goods at the zero rate as contemplated in Part 2 of an export incentive scheme referred to in paragraph (d) of the de nition of ‘exported’ in section 1:
Provided that—
(aa) where a supplier has supplied the goods to the recipient in the Republic otherwise than in terms of this subparagraph, such supply shall not be charged with tax at the rate of zero per cent; and
(bb) where the goods have been removed from the Republic by the recipient in accordance with the provisions of an export incentive scheme referred to in paragraph (d) of the de nition of ‘exported’ in section 1, such tax shall be refunded to the recipient in accordance with the provisions of section 44(9); or
(2) Where, but for this section, a supply of services would be charged with tax at the rate referred to in section 7(1), such supply of services shall, subject to compliance with subsection (3) of this section, be charged with tax at the rate of zero per cent where—
(k) . . .
(l) the services are supplied to a person who is not a resident of the Republic, not being services which are supplied directly—
(i) in connection with land or any improvement thereto situated inside the Republic; or
(ii) in connection with movable property (excluding debt securities, equity securities or participatory securities)
situated inside the Republic at the time the services are rendered, except movable property which—
(aa) is exported to the said person subsequent to the supply of such services; o
(bb) forms part of a supply by the said person to a registered vendor and such services are supplied to the said
person for purposes of such supply to the registered vendor; or
(iii) to the said person or any other person, other than in circumstances contemplated in subparagraph (ii)(bb), if
the said person or such other person is in the Republic at the time the services are rendered,
and not being services which are the acceptance by any person of an obligation to refrain from carrying on any enterprise, to the extent that the carrying on of that enterprise would have occurred within the Republic; or
.. .
(3) Where a rate of zero per cent has been applied by any vendor under the provisions of this section, the vendor
shall obtain and retain such documentary proof substantiating the vendor’s entitlement to apply the said rate under those provisions as is acceptable to the Commissioner.
Interpretation Note: No. 82
DATE: ACT: SECTIONS: SUBJECT:
25 March 2015
VALUE-ADDED TAX ACT 89 OF 1991 SECTIONS 1 (1), 17 (2) (c) AND 18 INPUT TAX ON MOTOR CARS
Preamble
1. Purpose
2. The law
3. Application of the law 3.1 De nition of motor car 3.1.1 Exclusions
CONTENTS
Juta’s IndIrect tax 2016
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