Page 508 - Juta's Indirect Tax

BGR 002 VALUE-ADDED TAX ACT: BiInNDiInNgG gGEnNErRAL RrULIiNnGgS BGR 003
rely on the written decision issued by the Commissioner until such time that the vendor is noti ed of the effective date of the withdrawal of such written decision.
The period to be allowed for this process will commence on 1 January 2007 and end on 30 June 2007. The expiry dates for lodging requests are as follows:
• Written decisions issued from 1 January 2004 to 31 December 2006: 30 April 2007;
• Written decisions issued from 1 January 2002 to 31 December 2003: 31 May 2007;
• Written decisions issued prior to 1 January 2002: 30 June 2007;
• Written decisions issued to bodies or associations representing certain industries or a class of vendors: 31 May
2007; and
• Section 72 rulings: 31 May 2007.
Failure by a vendor to lodge such requests with the Commissioner within the prescribed periods will result in the previously issued written decision being regarded as a non-binding opinion. The effect hereof is that the Commissioner is not bound to interpret or apply the legislation as set out in the written decision in respect of supplies made after the expiry dates stipulated above.
3.3 Any ruling or written decision submitted for con rmation on or before 30 June 2007 will be regarded as a binding decision until such time that the Commissioner noti es the applicant of its status.
3.4 General written rulings [section 41 (a) and (b)]
Only general written rulings listed in the Rulings Register on the SARS website as well as those contained in Practice Notes, Interpretation Notes and the various issues of Vatnews will continue to be binding to the extent that those rulings are not withdrawn by the Commissioner. In the event that notice is given by the Commissioner that a particular general written ruling or document that contains such a ruling is to be withdrawn, it is recommended that the person who relied on such ruling should apply for either a VAT ruling or a binding private ruling.
3.5 Section 72 rulings
All Section 72 rulings issued prior to 31 December 2006 are withdrawn with effect from 1 June 2007, unless the
procedure for lodging a request as mentioned in paragraph 3.2. above has been complied with.
3.6 Other
The view is held that any written statement not speci cally mentioned above had no binding effect in terms of section 41 of the VAT Act. To obtain a binding ruling in this regard, an application for a VAT ruling or a binding private ruling as mentioned in paragraph 4 below must be submitted.
3.7 Rulings for which con rmation is not required Requests relating to any decision pertaining to the following sections of the VAT Act need not be lodged with the Commissioner as these are regarded as binding and do not require con rmation (provided the requirements of section 41 (c) have been complied with):
(a) Section 11 (3) read with VAT Interpretation Note Nr. 30 of 30 March 2005: Extensions granted to obtain proof
of payment up to a maximum of 6 months from the date of the invoice;
(b) Section 27: Determination from the Commissioner in respect of the category of tax period;
(c) The second proviso to Section 27 (6): Tax period ending on a day other than the last day of the month as
approved by the Commissioner; and
(d) Section 55 (4): A determination regarding the retention of records in a format other than hard copies.
4. Conclusion
A further document explaining the procedure to follow when applying for VAT rulings and VAT class rulings will be issued in due course.
Note that the procedures as set out in the ATR Guide, in order to obtain a binding private ruling regarding the application or interpretation of the VAT Act under the Advance Tax Rulings legislation contained in Part 1A of Chapter III of the Income Tax Act 58 of 1962, are not affected by this binding general ruling or the proposed legislative amendments mentioned above.
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 1 January 2007.
DATE: ACT: SECTION: SUBJECT:
1. Purpose
BINDING GENERAL RULING (VAT): BGR 3
4 December 2007
VALUE-ADDED TAX ACT 89 OF 1991 (the VAT Act) SECTIONS 28 AND 72
TRANSITIONAL ARRANGEMENTS FOR MUNICIPALITIES: RETURNS AND PAYMENT OF TAX IN RESPECT OF SUPPLIES WHICH BECAME TAXABLE FOR THE FIRST TIME DURING THE TRANSITION PERIOD
The purpose of this binding general ruling is to:
1.1 1.2
provide approval to municipalities regarding the accounting of output tax on supplies which became taxable for the rst time during the transition period; and
make an arrangement in terms of section 72 of the VAT Act for municipalities .
1.2.1 registered on Category A in terms of section 27 (1) of the VAT Act;
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