Page 499 - Juta's Indirect Tax

IN 84 VaLue-added tax act: InterPretatIOn nOtes IN 84
(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;
Section 8 – Certain supplies of goods or services deemed to be made or not made
(13) For the purposes of this Act, where any person bets an amount on the outcome of a race or on any other event or occurrence, the person with whom the bet is placed shall be deemed to supply a service to such rst-mentioned. Section 9 – Time of supply
(3) . . . .. .
(e) where any supply of a service is deemed to be made as contemplated in section 8(13), the service shall be deemed to be supplied to the extent that payment of any amount of the bet is made, and each such supply shall be deemed to take place whenever any payment in respect of such supply is received by the supplier;
Section 10 – Value of supply of goods or services
(17) Where a service is deemed by section 8(13) to be supplied to any person, the consideration in money for such supply shall be deemed to be the amount that is received in respect of the bet.
Section 16 – Calculation of tax payable
(1) . . .
(2) . . .
(3) Subject to the provisions of subsection (2) of this section and the provisions of sections 15 and 17, the amount of
tax payable in respect of a tax period shall be calculated by deducting from the sum of the amounts of output tax of the vendor which are attributable to that period, as determined under subsection (4), and the amounts (if any) received by the vendor during that period by way of refunds of tax charged under section 7(1)(b) and (c) and 7(3)(a), the following amounts, namely—
(a) . . .
Provided that this paragraph does not apply where a vendor acquires goods or services that are to be awarded as a prize or winnings and in respect of which that vendor quali es or will qualify for a deduction in terms of paragraph (d).
.. .
(d) an amount equal to the tax fraction of any amount paid during the tax period by the supplier of the services
contemplated in section 8(13) as a prize or winnings to the recipient of such services: Provided that where the prize or winnings awarded constitutes either goods or services, the deduction must be limited to the input tax on the initial cost of acquiring those goods or services;
Section 17 – Permissible deductions in respect of input tax
(1) Where goods or services are acquired or imported by a vendor partly for consumption, use or supply (hereinafter referred to as the intended use) in the course of making taxable supplies and partly for another intended use, the extent to which any tax which has become payable in respect of the supply to the vendor or the importation by the vendor, as the case may be, of such goods or services or in respect of such goods under section 7(3) or any amount determined in accordance with paragraph (b) or (c) of the de nition of ‘input tax’ in section 1, is input tax, shall be an amount which bears to the full amount of such tax or amount, as the case may be, the same ratio (as determined by the Commissioner in accordance with a ruling as contemplated in Chapter 7 of the Tax Administration Act or section 41B) as the intended use of such goods or services in the course of making taxable supplies bears to the total intended use of such goods or services: Provided that—
.. .
(i) where the intended use of goods or services in the course of making taxable supplies is equal to not less than 95
per cent of the total intended use of such goods or services, the goods or services concerned may for the purposes
of this Act be regarded as having been acquired wholly for the purpose of making taxable supplies;
(ii) where goods or services are deemed by section 9(3)(b) to be successively supplied, the extent to which the tax relating to any payment referred to in that section is input tax may be estimated where the calculation cannot be made accurately until the completion of the supply of the goods or services, and in such case such estimate shall be adjusted on completion of the supply, any amount of input tax which has been overestimated being accounted for as output tax in the tax period during which the completion occurs and any amount of input tax which has been
underestimated being accounted for as input tax in that period; and
(iii) where a method for determining the ratio referred to in this subsection has been approved by the Commissioner,
that method may only be changed with effect from a future tax period, or from such other date as the Commissioner may consider equitable and such other date must fall—
(aa) in the case of a vendor who is a taxpayer as de ned in section 1 of the Income Tax Act, within the year
of assessment as de ned in that Act, or
(bb) in the case of a vendor who is not a taxpayer as de ned in section 1 of the Income Tax Act, within
the period of twelve months ending on the last day of February, or if such vendor draws up annual
nancial statements in respect of a year ending other than on the last day of February, within that year, during which the application for the aforementioned method was made by the vendor.
Section 20 – Tax invoices
(4) Except as the Commissioner may otherwise allow, and subject to this section, a tax invoice (full tax invoice) shall be in the currency of the Republic and shall contain the following particulars:
(a) The words ‘tax invoice’ in a prominent place;
(b) the name, address and VAT registration number of the supplier;
(c) the name, address and, where the recipient is a registered vendor, the VAT registration number of the recipient; (d) an individual serialized number and the date upon which the tax invoice is issued;
Juta’s IndIrect tax 2016 491