Page 521 - Juta's Indirect Tax

BGR 014 VALUE-ADDED TAX ACT: BinDing gEnErAL rULingS BGR 015 (2)
(b) Employer acting as agent on behalf of employees
The employer, acting as agent of its employees, entering into a contract of insurance with the short-term insurer will not be entitled to deduct input tax in respect of short-term group personal accident insurance.
2.13 Reinsurance
The supply of reinsurance is treated in the same manner as insurance and therefore paragraphs 2.1 to 2.10 of this BGR will apply.
2.14 Documentary proof in respect of zero-rating
The zero-rating of supplies contained in this BGR are conditional upon the insurer obtaining and retaining the documentary proof as provided for in terms of section 11 (3) read with Interpretation Note 31 ‘Documentary Proof Required for the Zero-Rating of Goods and Services’ as updated. Failure to obtain and retain the required documentary proof will result in the vendor effecting the relevant adjustments as stipulated in Interpretation Note 31.
2.15 Documentary proof in respect of input tax
The statements contained in this BGR regarding input tax deductions are conditional upon the vendor obtaining and retaining the documentary proof as provided for in Interpretation Note 49 ‘Documentary Proof Required to Substantiate a Vendor’s Entitlement to ‘Input Tax’ or a Deduction as Contemplated in Section 16(2)’ as updated. Failure to obtain and retain the required documentary proof will result in the vendor effecting the relevant adjustments as stipulated in Interpretation Note 49.
3. Period for which this ruling is valid
This BGR is issued in accordance Chapter 7 of the Tax Administration Act 28 of 2011 as made applicable to the VAT Act by section 41B. It is effective from 1 July 2013 and will apply for an inde nite period.
DATE: ACT : SECTION: SUBJECT:
Preamble
BINDING GENERAL RULING (VAT): NO. 15 (Issue 2)
31 March 2014
VALUE-ADDED TAX ACT 89 OF 1991
SECTIONS 20(2) AND 21(4)
RECIPIENT-CREATED TAX INVOICES, CREDIT AND DEBIT NOTES
For the purposes of this ruling –
• ‘BGR’ means a binding general ruling issued under section 89 of the TA Act; • ‘section’ means a section of the VAT Act unless otherwise stated;
• ‘TA Act’ means the Tax Administration Act 28 of 2011;
• ‘VAT Act’ means the Value-Added Tax Act 89 of 1991; and
• any word or expression bears the meaning ascribed to it in the VAT Act.
1. Purpose
This BGR provides the approval for the issuing of recipient-created tax invoices, credit and debit notes (also known as self-invoicing).
2. Ruling
This ruling constitutes a BGR issued under section 89 of the TA Act. A tax invoice, credit or debit note issued by a supplier in respect of a taxable supply for which a recipient has been granted approval to issue a recipient-created tax invoice, credit or debit note, as set out in 2.1 and 2.2 below, shall be deemed not to be a tax invoice, credit or debit note for the purposes of the VAT Act.
2.1 Tax invoices
The Commissioner’s approval is hereby granted to vendors to issue recipient-created tax invoices, where the recipient – • determines the consideration for the supply of the goods or services; and
• is in control of determining the quantity or quality of the supply, or is responsible for measuring or testing the goods
sold by the supplier.
2.2 Credit and debit notes
A vendor that has been granted approval in terms of 2.1 to create and issue recipient-created tax invoices is hereby granted approval by the Commissioner to create and issue recipient-created credit and debit notes relating to the recipient-created tax invoices issued.
2.3 Conditions for Commissioner’s approval
The approval set out in 2.1 and 2.2 is conditional upon the recipient, being a vendor,–
(a) acquiring and retaining proof of the supplier’s VAT registration number;
(b) entering into an agreement with the supplier that the supplier shall not issue a tax invoice, credit or debit note in
respect of any taxable supply to which the approval applies;
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