Page 528 - Juta's Indirect Tax

BGR 026 VALUE-ADDED TAX ACT: BinDing gEnErAL rULingS BGR 027
Fresh and frozen herbs sold in the following forms qualify for zero-rating: • Cut
• Diced
• Shredded
Subject to 3.2, the zero-rating applies regardless of whether the herbs are sold individually (for example, a packet of curry leaves or a packet of angelica) or mixed with other vegetables (for example, mixed cucumber and parsley or mixed lettuce and fresh dill) provided all other vegetables are zero-rated.
3.2 Standard-rated supplies
The supply of herbs in the following instances is speci cally excluded from Item 12 and is therefore subject to VAT at the rate of 14% under section 7(1)(a):
(a) Cut, diced or shredded herbs, to which any other substance has been added (other than for the purpose of preserving
such herbs in their natural state).
(b) Minced or pureed herbs.
(c) Fresh or frozen herbs that have been treated with an additive for the purpose of adding colour or avour (for
example, glucose, dextrose, sugar or salt).
(d) Herbs 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.
3.3 The importation of herbs
The importation of herbs referred to in 3.1 is under section 13(3) read with paragraph 7(a) of Schedule 1 to the VAT Act exempt from the VAT levied under section 7(1)(b). The importation of herbs referred to in 3.2 is subject to VAT at the rate of 14% under section 7(1)(b).
4. Period for which this ruling is valid
This BGR applies from date of issue and will apply until it is withdrawn or the relevant legislation is amended. Any ruling that would, but for this BGR, allow vendors to supply or import herbs at a rate that is different from the rate prescribed in this BGR is withdrawn with immediate effect. To the extent that this BGR does not provide for a speci c scenario on the supply or importation of herbs, vendors may apply for a VAT ruling or VAT class ruling in writing by sending an e-mail to VATRulings@sars.gov.za or by facsimile to 086 540 9390. The application should consist of a completed VAT301 form and must comply with the provisions of section 79 of the Tax Administration Act, 2011 excluding section 79(4)(f), (k) and (6).
Group Executive: Interpretation and Rulings Legal and Policy Division
SOUTH AFRICAN REVENUE SERVICE
DATE: ACT: SECTION: SUBJECT:
Preamble
Binding General Ruling (VAT) No: 27
26 March 2015
VALUE-ADDED TAX ACT 89 OF 1991 SECTIONS 20 (4), (5), (7), 21 (1) AND (5) APPLICATION OF SECTIONS 20 (7) AND 21 (5)
For purposes of this ruling –
• ‘BGR’ means a binding general ruling issued under section 89 of the Tax Administration Act, 2011; • ‘section’ means a section of the VAT Act;
• ‘VAT’ means value-added tax;
• ‘VAT Act’ means the Value-Added Tax Act No. 89 of 1991;
• ‘the Note’ means Interpretation Note No. 83 ‘Application of sections 20 (7) and 21 (5)’; and
• any other word or expression bears the meaning ascribed to it in the VAT Act.
1. Purpose
This BGR sets out the circumstances and conditions under which a vendor need not issue a tax invoice, credit or debit note.
2. Ruling
The Commissioner, subject to the conditions listed below, directs under sections 20 (7) (b) and 21 (5) (b) that a tax invoice, credit or debit note need not be issued.
520 Juta’s IndIrect tax 2016