Page 507 - Juta's Indirect Tax

BGR 001
VALUE-ADDED TAX ACT: BINDING GENERAL RULINGS
BINDING GENERAL RULINGS BINDING GENERAL RULING (VAT): BGR 1
30 November 2006
VALUE-ADDED TAX ACT 89 OF 1991 (‘the VAT Act’) SECTION 41 (c)
VAT RULINGS
BGR 002
DATE: ACT: SECTION: SUBJECT:
1. Purpose
The purpose of this ruling is to provide clarity on the binding status of written decisions, regarding the interpretation and application of the VAT Act, issued by the Commissioner.
2. Ruling
Any written decision issued in terms of section 41 (c) of the VAT Act, regarding the interpretation and application of the VAT Act, will continue to be binding until further notice, to the extent that such decision was accepted by the vendor and all the material facts were known to the Commissioner when the decision was given.
This ruling does not apply to any binding private ruling issued in accordance with section 76Q of the Income Tax Act, 1962, as made applicable, mutatis mutandis, to the VAT Act by section 41A of the VAT Act, as inserted by section 12(1) of the Taxation Laws Second Amendment Act 10 of 2005 which is effective from 1 October 2006 (see Government Gazette No 29263 dated 29 September 2006).
This ruling is a binding general ruling issued in accordance with section 76P of the Income Tax Act, 1962 as made applicable to the VAT Act by section 41A of the VAT Act. This binding general ruling is effective until 31 December 2006.
The Commissioner will provide further guidance, through a separate binding general ruling, in respect of the procedures vendors must follow if they wish to obtain con rmation of these written decisions.
DATE: ACT: SECTION: SUBJECT:
1. Purpose
BINDING GENERAL RULING (VAT): BGR 2
1 January 2007
VALUE-ADDED TAX ACT 89 OF 1991, (‘the VAT Act’) SECTIONS 41 and 72 of the VAT Act
GENERAL WRITTEN RULINGS AND WRITTEN DECISIONS
The purpose of this binding general ruling is to provide guidance on the status of rulings issued prior to 1 January 2007 and the process in obtaining con rmation of the binding nature of such rulings.
2. Background
In terms of a proposed amendment which will become effective 1 January 2007, the provisions of section 41 (c) of the VAT Act will have no binding effect on the Commissioner with regard to any written decision issued by the Commissioner prior to 1 January 2007 that was in respect of supplies which are, or will be made on or after 1 January 2007. However, the proposed proviso to section 41 (c) of the VAT Act makes provision for the Commissioner to con rm in writing the binding nature of any written decision issued prior to 1 January 2007.
3. Ruling
3.1 The proposed amendment to section 41 (c) of the VAT Act will not withdraw the binding effect of written decisions issued by the Commissioner in respect of supplies that were made on or before 31 December 2006 (i.e. supplies that will not occur after 1 January 2007). These decisions will remain binding and the vendor can rely on such decisions.
3.2 With regard to written decisions issued by the Commissioner prior to 1 January 2007, in respect of supplies made or to be made on or after 1 January 2007, vendors who wish to retain the certainty that a binding ruling provides, must apply to the Commissioner for con rmation of the status of the decision.
These requests must be clearly marked as ‘VAT Rulings Con rmation Request’. A copy of the original application and the ruling issued must be included in the request. Requests must be sent to the following centralised e-mail address or fax number
Fax number: (012) 422 4443 E-mail: VATRulings@sars.gov.za.
Where the Commissioner is satis ed with the previously issued written decision, the Commissioner will issue a written noti cation to such vendor con rming the binding status of the written decision.
To the extent that the Commissioner is not satis ed with the correctness of the written decision, the Commissioner will issue a written noti cation to the applicant withdrawing the written decision. In this instance, the vendor can
Juta’s IndIrect tax 2016 499