Page 52 - Juta's Indirect Tax

s 16
VALUE-ADDED TAX ACT 89 OF 1991 s 16
(j)
(i) in the case of a vendor who has, during the tax period, supplied a property in possession in the course or furtherance of his enterprise under a sale, an amount equal to the tax fraction of the lesser of—
(aa)the amount (excluding any amount of tax) received in respect of the sale of such property in possession less any amount paid by the vendor in respect of the acquisition of such property in possession; and
(l) an amount as determined by the Commissioner in lieu of a refund in respect of the purchase and use of diesel paid by a vendor to a supplier of pastoral, agricultural or other farming products who is not a vendor, in terms of a scheme operated by the controlling body of an industry for the development of small-scale farmers approved by the Minister with the concurrence of the Cabinet member responsible for agriculture to compensate that supplier for an amount refundable in the production of such goods;
[Para. (l) added by s. 156 (d) of Act 60 of 2001 and substituted by s. 173 (1) (c) of Act 31 of 2013 – date of commencement: 1 April 2014.]
(m) an amount equal to the tax fraction initially applied to any excess amount contemplated in section 8 (27) which is refunded by the vendor during the tax period;
(ii)
services required to make an adjustment contemplated in section 18 (2) or (5), the amounts then represented by ‘A’ in the formula contemplated in section 10 (9) or ‘B’ in the formula contemplated in section 18 (5) respectively, in the most recent adjustment made in terms of section 18 (2) or (5) by the vendor prior to such supply of goods or services; and
the open market value of the supply of those goods or services at the time those goods or services are deemed to be supplied; and
(ii)
(bb) the amount of the unrecovered loan balance less any amount paid by the vendor in respect of the acquisition of such property in possession:
Provided that no deduction shall be made in terms of this paragraph where the person in default is or will be held liable for payment of such lesser amount;
for the purposes of this paragraph— (aa)‘property in possession’ means xed
property acquired by any vendor—
(A) atasaleinexecutionasaresultofdefault by any person (other than a person who held or applied such xed property for the purpose of making taxable supplies in the course or furtherance of his enterprise immediately before such sale in execution) in respect of an unrecovered loan balance due to that vendor in terms of a credit agreement; or (B) as a result of an abandonment authorised by the Master of the High Court where such person has defaulted in respect of an unrecovered loan balance due to that vendor in terms of a
credit agreement or gone insolvent; (bb) ‘unrecovered loan balance’ means the amount of capital, interest and administrative holding costs outstanding in terms of a credit agreement at the date of sale in execution or the date of authorisation of abandonment by
the Master of the High Court;
‘C’ represents the percentage that, immediately before the time of the supply, the use or application of the goods or services for the purpose other than that of making taxable supplies was of the total use or application of the goods or services: Provided that—
(i) . . .
[Para. (i) deleted by s. 148 (1) (b) of Act 22 of 2012 – date of commencement deemed to have been 10 January 2012. The deletion of the proviso applies in respect of supplies made on or after that date.]
(ii) this subsection does not apply where— (aa) such goods or services were acquired before 1 April 2005, or an input tax deduction in respect of that acquisition was denied under proviso (iv) to
section 18 (4); and
(bb) the vendor is a public authority which
registered prior to 1 April 2005, notwithstanding paragraph (b) (i) of ‘enterprise’ in section 1 or a public entity listed in Part A or C of Schedule
3 to the Public Finance Management (k) Act, 1999 (Act 1 of 1999); or
(iii) this subsection does not apply where such goods or services were acquired by a municipality before 1 July 2006, or an input tax deduction in respect of that acquisition was denied in terms of paragraph (v) of the proviso to section 18 (4);
[Para. (iii) added by s. 47 (1) (b) of Act 9 of 2006.]
[Para. (h) amended by s. 21 (e) of Act 136 of 1992, by s. 16 (e) of Act 20 of 1994, by s. 91 (c) of Act 30 of 1998 and by s. 107 (1) (e) of Act 31 of 2005.]
(i) an amount equal to the tax fraction of any payment made by the vendor during the tax period in respect of the redemption with him, or his agent, of the monetary value of any token, voucher or stamp contemplated in section 10 (20), to a supplier of goods or services who has granted a discount on the surrender to him of such token, voucher or stamp by a recipient of a supply of goods or services if those goods or services are not charged with tax at the rate of zero per cent under section 11;
[Para. (i) added by s. 16 (g) of Act 20 of 1994 and substituted by s. 137 (1) (e) of Act 24 of 2011 — date of commencement: 10 January 2012. This paragraph applies in respect of supplies made on or after that date.]
[Para. (j) inserted by s. 32 (c) of Act 27 of 1997.]
an amount of input tax as determined by the Commissioner paid by a vendor to a supplier of pastoral, agricultural or other farming products who is not a vendor, in terms of a scheme operated by the controlling body of an industry for the development of small-scale farmers approved by the Minister with the concurrence of the Minister of Agriculture and Land Affairs to compensate that supplier for tax incurred in the production of such goods;
[Para. (k) added by s. 71 (1) (a) of Act 19 of 2001.]
(n)
[Para. (m) added by s. 83 (1) (c) of Act 20 of 2006.]
an amount equal to the tax fraction of the lesser of the amount contemplated in section 10 (25) or the open market value of the movable goods on the date—
(i) those goods are returned to the customs controlled area enterprise or IDZ operator; or
[NB: Sub-para. (i) has been substituted by s. 26 (1) (e) of Act 44 of 2014, a provision that will come into operation
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Juta’s IndIrect tax 2016