Page 53 - Juta's Indirect Tax

s 16 VALUE-ADDED TAX ACT 89 OF 1991 s 16
on the date on which the Customs Control Act 31 of 2014 takes effect. See Pendlex below.]
(ii) those goods are supplied by the customs controlled area enterprise or IDZ operator where those goods are supplied after the relevant prescribed time period contemplated in section 8 (24):
[NB: Sub-para. (ii) has been substituted by s. 26 (1) (e) of Act 44 of 2014, a provision that will come into operation on the date on which the Customs Control Act 31 of 2014 takes effect. See Pendlex below.]
[Para. (n) added by s. 111 of Act 60 of 2008.] Provided that—
(i) where any vendor is entitled under the preceding provisions of this subsection to deduct any amount in respect of any tax period from the said sum, the vendor may deduct that amount from the amount of output tax attributable to a later tax period which ends no later than ve years after the end of the tax period during which—
(aa) the tax invoice for that supply should have been issued as contemplated in section 20 (1);
(bb) goods were entered for home consumption in terms of the Customs and Excise Act;
[NB: Sub-para. (bb) has been substituted by s. 26 (1) (f) of Act 44 of 2014, a provision that will come into operation on the date on which the Customs Control Act 31 of 2014 takes effect. See Pendlex below.]
(cc) second-hand goods were acquired or goods as contemplated in section 8 (10) were repossessed or surrendered;
[Sub-para. (cc) substituted by s. 173 (1) (d) of Act 31 of 2013 – date of commencement: 1 April 2014; the substituted subparagraph applies in respect of goods surrendered on or after that date.]
(dd) the agent should have noti ed the principal as contemplated in section 54 (3); or
(ee) in any other case, the vendor for the rst time became entitled to such deduction, notwithstanding the documentary proof that the vendor must be in possession of in terms of subsection (2) of this section; and
(ii) the said period of ve years contemplated in proviso (i) of this section shall be limited to six months prior to the tax period in which the deduction is made, where the Commissioner is satis ed that the deduction was not permissible in accordance with the practice generally prevailing,
and to the extent that it has not previously been deducted by the vendor under this subsection: Provided further that the amount of input tax which, in relation to any supply of goods or services to a vendor, the vendor may deduct in respect of any payment referred to in paragraph (a) (ii) or (b) (i) of this subsection, shall be an amount which bears to the full amount of the input tax relating to that supply the same ratio as the amount of the payment bears to the full value on which tax was payable in respect of the supply. [Sub-s. (3) amended by s. 71 (1) (b) of Act 19 of 2001, by s. 107 (1) (f) of Act 31 of 2005, by s. 83 (1) (d) of Act 20 of 2006 and by s. 106 of Act 35 of 2007.]
(4) For the purposes of subsection (3), output tax in relation to a supply made by a vendor shall be attributable to a tax period—
(a) in the case of a vendor who is in terms of section
15 required to account for tax payable on an invoice basis—
(i) subject to the provisions of subparagraph (ii), where a supply is made or is deemed to be made by him during that tax period;
(ii) where a supply is made under a sale concluded on or after 6 June 1996 in respect of which the provisions of section 9 (3) (d) apply (other than a supply in respect of which the provisions of section 10 (4) apply), to the extent that payment 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 that supply has been made during that tax period; or
[Sub-para. (ii) substituted by s. 32 (d) of Act 27 of 1997.] [Para. (a) substituted by s. 23 (1) (f) of Act 37 of 1996.] (b) in the case of a vendor who is in terms of section 15
required to account for tax payable on a payments basis—
(i) to the extent that payment 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 has been received by the vendor during that tax period for any supply of goods or services in respect of which the provisions of section 9 (1), (3) (a), (b) or (d) or (4) or 21 (2) (a) or (6) apply (other than a supply in respect of which the provisions of section 10 (4) apply);
[Sub-para. (i) substituted by s. 30 (d) of Act 97 of 1993, by s. 16 (h) of Act 20 of 1994, by s. 23 (1) (g) of Act 37 of 1996 and by s. 87 (c) of Act 53 of 1999.]
(ii) where a supply of goods or services is made or deemed to be made during the tax period by that vendor, not being a supply of goods or services to which subparagraph (i) of this paragraph applies.
(5) If, in relation to any tax period of any vendor, the aggregate of the amounts that may be deducted under subsection (3) from the sum referred to in that subsection, the amount (if any) refundable to the vendor under section 15 (8), and any other amount refundable under Chapter 13 of the Tax Administration Act, exceeds the said sum, the amount of the excess shall, subject to the provisions of this Act, be refundable to the vendor by the Commissioner as provided in Chapter 13 of the Tax Administration Act.
[Sub-s. (5) substituted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.*]
Pendlex (to come into operation on the date on which the Customs Control Act 31 of 2014 takes effect)
(i) those goods are returned to the SEZ enterprise or IDZ operator in a customs controlled area; or
Pendlex (to come into operation on the date on which the Customs Control Act 31 of 2014 takes effect)
(ii) those goods are supplied by the SEZ enterprise or IDZ operator in a customs controlled area where those goods are supplied after the relevant prescribed time period contemplated in section 8 (24):
Pendlex (to come into operation on the date on which the Customs Control Act 31 of 2014 takes effect)
(bb) goods were cleared for home use in terms of the Customs Control Act;
* Except to the extent related to interest under s. 39, in which case the wording prior to the amendment applies. See Prelex below.
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VALUE-ADDED TAX ACT