Page 51 - Juta's Indirect Tax

s 16 VALUE-ADDED TAX ACT 89 OF 1991 s 16
(i) in respect of supplies of goods and services made to the vendor in respect of which the provisions of section 9 (1), (3) (a), (b) or (d) or (4) apply, to the extent that payments 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 have been made during that tax period;
[Sub-para. (i) substituted by s. 30 (b) of Act 97 of 1993 and by s. 16 (b) of Act 20 of 1994 and amended by s. 23 (1) (e) of Act 37 of 1996 and by s. 148 (1) (a) of Act 22 of 2012 – date of commencement deemed to have been 10 January 2012. The deletion of the proviso to sub-para. (i) applies in respect of supplies made on or after that date.]
(ii) 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 or 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 by the vendor during that tax period;
[Sub-para. (ii) substituted by s. 83 (1) (b) of Act 8 of 2007 and by s. 98 (1) (b) of Act 43 of 2014 – date of commencement: 1 April 2015.]
(iii) in respect of supplies of goods and services made to the vendor during the tax period, excluding supplies of goods and services to which subparagraph (i) of this paragraph applies;
(iv) calculated in accordance with section 21 (2) (b) or 21 (7), as applicable to the vendor, to the extent that payments in respect of the tax so calculated have been made during the tax period;
(v) calculated in accordance with section 22 (1), as applicable to the vendor:
[Sub-para. (v) substituted by s. 30 (b) of Act 136 of 1991.] 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. (b) amended by s. 107 (1) (c) of Act 31 of 2005.] (c) an amount equal to the tax fraction of any payment made during the tax period by the vendor to indemnify another person in terms of any contract of insurance:
Provided that this paragraph—
(i) shall only apply where the supply of that
contract of insurance is a taxable supply or where the supply of that contract of insurance would have been a taxable supply if the time of performance of that supply had been on or after the commencement date;
(ii) shall not apply where that payment is in respect of the supply of goods or services to the vendor or the importation of any goods by the vendor;
(iii) shall not apply where the supply of that contract of insurance is a supply charged with tax at the rate of zero per cent under section 11 and that other person is, at the time that that payment is made, not a vendor and not a resident of the Republic;
(iv) shall not apply where that payment results from a supply of goods or services to that other person where those goods are situated outside the Republic or those services are physically performed elsewhere than in the Republic at the time of that supply;
[Sub-para. (iv) substituted by s. 16 (c) of Act 20 of 1994.] Juta’s IndIrect tax 2016
(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;
[Para. (d) substituted by s. 107 (1) (d) of Act 31 of 2005 and by s. 83 (1) (b) of Act 20 of 2006.]
(dA) an amount equal to the tax fraction of any amount paid by the supplier of the services as contemplated in section 8 (13) to the National Lottery Distribution Trust Fund, established by section 21 of the Lotteries Act, 1997 (Act 57 of 1997);
[Para. (dA) inserted by s. 87 (b) of Act 53 of 1999.]
(e) an amount equal to the tax fraction of any amount of tax on totalizator transactions or tax on betting levied and paid for the bene t of any Provincial Revenue Fund by the supplier of the services contemplated in
section 8 (13);
(f) the amounts calculated in accordance with section 18
(4) or (5) in relation to any goods or services applied
during the tax period as contemplated in that section; (g) any amount of input tax in relation to any supply or other deduction in respect of which subsection (2) of this section has operated to deny a deduction and the vendor has obtained, during the tax period, the prescribed documents or records in relation to that
supply;
[Para. (g) substituted by s. 30 (e) of Act 36 of 2007.]
(h) in the case of a vendor who has supplied goods or services during that tax period, otherwise than in terms of section 18 (2), an amount determined in
accordance with the formula
A 3 B 3 C,
in which formula—
‘A’ represents the tax fraction; ‘B’ represents the lesser of—
(i) (aa)the adjusted cost (including any tax forming part of such adjusted cost) to the vendor of the acquisition, manufacture, assembly, construction or production of those goods or services: Provided that where the goods or services were acquired under a supply in respect of which the consideration in money was in terms of section 10 (4) deemed to be the open market value of the supply, the adjusted cost of those goods or services shall be deemed to include such open market value to the extent that it exceeds the consideration in money for that supply; or
[Item (aa) substituted by s. 30 (c) of Act 97 of 1993 and by s. 172 (b) of Act 45 of 2003.]
(bb) where the vendor was at some time after the acquisition of such goods or services deemed under section 18 (4) to have been supplied with such goods or services, the amount which was represented by ‘B’ in the formula contemplated in section 18 (4) when such goods or services were deemed to be supplied to the vendor; or
(cc) where the vendor was at some time after the acquisition of such goods or
43
VALUE-ADDED TAX ACT