Page 50 - Juta's Indirect Tax

s 16 VALUE-ADDED TAX ACT 89 OF 1991 s 16
Provided that where a tax invoice or debit note or credit note in relation to that supply has been provided in accordance with this Act, or a bill of entry or other document has been delivered (including by means of an electronic delivery mechanism) in accordance with the Customs and Excise Act, as the case may be, the Commissioner may determine that no deduction for input tax in relation to that supply or importation shall be made unless that tax invoice or debit note or credit note or that bill of entry or other document is retained in accordance with the provisions of section 55 and Part A of Chapter 4 of the Tax Administration Act. [Proviso substituted by s. 25 (1) (a) of Act 44 of 2014 – date of commencement: 1 April 2015.]
[NB: The proviso has been substituted by s. 26 (1) (d) of Act 44 of 2014, a provision that will come into operation on the date on which the Customs Control Act 31 of 2014 takes effect. See Pendlex below.]
(bb) in respect of supplies of second-hand goods to which paragraph (b) of the de nition of ‘input tax’ in section 1 applies which consist of— (A) xed property in respect of which the
provisions of section 9 (3) (d) apply if transfer of that xed property was effected by registration in a deeds registry and the xed property was registered in the name of the vendor that makes the deduction during that tax period;
[Subitem (A) substituted by s. 137 (1) (c) of Act 24 of 2011 – date of commencement: 10 January 2012. This subitem applies in respect of supplies made on or after that date.]
(B) a share in a share block company which confers a right to or an interest in the use of immovable property if a signed use agreement has been entered into between the company that operates the share block scheme and a member of that company;
[Subitem (B) substituted by s. 137 (1) (c) of Act 24 of 2011 – date of commencement: 10 January 2012. This subitem applies in respect of supplies made on or after that date.]
[Sub-para. (ii) substituted by s. 30 (a) of Act 97 of 1993 and by s. 16 (a) of Act 20 of 1994, amended by s. 23 (1) (b) of Act 37 of 1996, substituted by s. 32 (a) of Act 27 of 1997 and amended by 2. 137 (1) (d) of Act 24 for 2011.]
(iiA) in respect of taxable supplies made to the vendor under sales concluded on or after 6 June 1996 in respect of which the provisions of section 9 (3) (d) apply (other than supplies in respect of which the provisions of section 10 (4) apply), to the extent that payment of any consideration which has the effect of reducing or discharging any obligation (whether an existing obligation or an obligation which will arise in the future) relating to the purchase price for those supplies has been made during that tax period;
[Sub-para. (iiA) inserted by s. 23 (1) (c) of Act 37 of 1996 and substituted by s. 32 (a) of Act 27 of 1997.]
(iii) charged in terms of section 7 (1) (b) in respect of goods imported into the Republic by the vendor and released in terms of the Customs and Excise Act during that tax period;
[Sub-para. (iii) substituted by s. 173 (1) (b) of Act 31 of 2013 (date of commencement: 1 April 2014) and by s. 98 (1) (a) of Act 43 of 2014 – date of commencement: 1 April 2015.]
(iv) charged in terms of section 7 (3) (a) in respect of goods subject to excise duty or environmental levy as contemplated in that section and paid during that tax period;
[Sub-para. (iv) substituted by s. 83 (1) (a) of Act 8 of 2007 and by s. 173 (1) (b) of Act 31 of 2013 – date of commencement: 1 April 2014.]
(v) calculated in accordance with section 21 (2) (b) or 21 (7) or section 22 (1), 22 (1A) or 22 (4), as applicable to the vendor:
[Sub-para. (v) substituted by s. 30 (a) of Act 136 of 1991, by s. 23 (1) (d) of Act 37 of 1996 and by s. 32 (b) of Act 27 of 1997.]
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).
[Para. (a) amended by s. 107 (1) (b) of Act 31 of 2005.]
Pendlex (to come into operation on the date on which the Customs Control Act 31 of 2014 takes effect)
: Provided that where a tax invoice or debit note or credit note in relation to that supply has been provided in accordance with this Act, or a release noti cation or other document has been delivered (including by means of an electronic delivery mechanism) in accordance with the Customs Control Act, as the case may be, the Commissioner may determine that no deduction for input tax in relation to that supply or importation shall be made unless that tax invoice or debit note or credit note or that release noti cation or other document is retained in accordance with the provisions of section 55 and Part A of Chapter 4 of the Tax Administration Act.
[Sub-s. (2) amended by s. 21 (a) and (d) of Act 136 of 1992, by s. 91 (b) of Act 30 of 1998, by s. 107 (1) (a) of Act 31 of 2005, by s. 83 (1) (a) of Act 20 of 2006, by s. 30 (a) and (d) of Act 36 of 2007, by s. 137 (1) (a) of Act 24 of 2011 and by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(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) in the case of a vendor who is in terms of section
15 required to account for tax payable on an invoice basis, the amounts of input tax—
(i) in respect of supplies of goods and services (not being supplies of second-hand goods to which paragraph (b) of the de nition of ‘input tax’ in section 1 applies and supplies referred to in subparagraph (iiA)) made to the vendor during that tax period;
[Sub-para. (i) substituted by s. 23 (1) (a) of Act 37 of 1996.] (ii) (aa) subject to the provisions of item (bb), in respect of supplies of second-hand goods to which paragraph (b) of the de nition of ‘input tax’ in section 1 applies to the extent that payment of any consideration which has the effect of reducing or discharging any obligation (whether an existing obligation or an obligation which will arise in the future) relating to the purchase price for those supplies has been made during that tax period;
[Item (aa) substituted by s. 137 (1) (b) of Act 24 of 2011 – date of commencement: 10 January 2012. This item applies in respect of supplies made on or after that date.]
(b)
in the case of a vendor who is in terms of section 15 required to account for tax payable on a payments basis, the amounts of input tax—
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Juta’s IndIrect tax 2016