Page 525 - Juta's Indirect Tax

BGR 018 VALUE-ADDED TAX ACT: BinDing gEnErAL rULingS BGR 019 (2)
3.1.3 Pitted or de-pitted dates
A ‘pitted’ date is a date where the stone has been removed. Dates are usually de-pitted by making a lengthwise slit in the date with a knife and neatly removing the pit.
3.1.4 Compressed dates
A compressed date is a ripened date from which the pit has been removed. The dates are initially compressed into big blocks, then cut into smaller blocks and packaged for sale.
3.1.5 Dehydrated dates
Dehydration is the process of removing moisture or water from a food product for the purpose of preserving the product.
3.2 The supply of dates
In terms of section 11 (1) (j) read with Item 13, the supply of fruit not cooked or treated in any manner except for the purpose of preserving this fruit in its natural state, is subject to VAT at the rate of zero per cent. Dehydrated, dried, canned or bottled fruit and nuts are excluded.
In terms of paragraph 2 in Part B of Schedule 2, the zero-rating shall not apply if the foodstuffs listed in Part B are supplied in the course of the furnishing or serving of any meal, refreshment, cooked or prepared food or any drink, so as to be ready for immediate consumption when supplied. An example is a fruit salad which is served in a restaurant or purchased at a store and ready to eat.
3.3 Importation of dates
The importation of goods into South Africa by any person is, in terms of section 7 (1) (b), subject to VAT at the rate of 14%, unless an exemption applies thereto. Section 13 (3), provides that the importation of goods speci ed in Schedule 1 is exempt from VAT levied in terms of section 7 (1) (b).
Paragraph 7 (a) of Schedule 1 read with section 13 (3), exempts goods consisting of certain foodstuffs set forth in Part A and Part B of Schedule 2 from VAT levied in terms of section 7 (1) (b) on importation.3
4. Ruling
4.1 Zero-rated supplies
The supply of fresh unpitted dates is zero-rated in terms of section 11 (1) (j) read together with Item 13. 4.2 Standard-rated supplies
The supply of dried dates, pitted or de-pitted dates, compressed dates, dehydrated dates are speci cally excluded from Item 13 and are subject to VAT at the standard rate of 14 % in terms of section 7 (1) (a).
4.3 Importation of dates
The importation of fresh unpitted dates is exempt from the VAT levied in terms of section 7 (1) (b) by section 13 (3) read with paragraph 7 (a) of Schedule 1. The importation of dates, listed in 4.2, is subject to VAT at the rate of 14% in terms of section 7 (1) (b).
5. Period for which this ruling is valid
This BGR is effective from 1 July 2013 until it is withdrawn, amended, the relevant legislation is amended or a decision of the courts differ materially from it.
Any ruling issued to vendors allowing vendors to supply dates at the rate of zero per cent other than that which is con rmed in this ruling, is withdrawn from 30 June 2013.
To the extent that this BGR does not provide for a speci c scenario in respect of the supply of dates, vendors may request a VAT ruling which must be sent to the following centralised e-mail address or fax number:
E-mail: VATRulings@sars.gov.za Fax number: 086 540 9390
DATE: ACT : SECTION: SUBJECT:
Preamble
BINDING GENERAL RULING (VAT): NO. 19 (Issue 2)
10 March 2014
VALUE-ADDED TAX ACT 89 OF 1991
SECTION 27(6)
APPROVAL TO END A TAX PERIOD ON A DAY OTHER THAN THE LAST DAY OF A MONTH
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;
• ‘TA Act’ means 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 relates to the approval to end tax periods on a day other than the last day of the month.
2. Ruling
The following three categories of cut-off dates of a vendor’s tax periods are approved by the Commissioner for purposes of proviso (ii) to section 27(6):
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