Page 55 - Juta's Indirect Tax

s 17 VALUE-ADDED TAX ACT 89 OF 1991 s 17
that such taxable supplies of entertainment are made for a charge which covers all direct and indirect costs of such entertainment;
[Sub-para. (i) substituted by s. 31 (b) of Act 136 of 1991 and by s. 33 (a) of Act 27 of 1997.]
(ii) such goods or services are acquired by the vendor for the consumption or enjoyment by that vendor (including, where the vendor is a partnership, a member of such partnership), an employee, of ce holder of such vendor, or a self- employed natural person in respect of a meal, refreshment or accommodation, in respect of any night that such vendor or member is by reason of the vendor’s enterprise or, in the case of such employee, of ce holder or self-employed natural person, he or she is by reason of the duties of his or her employment, of ce or contractual relationship, obliged to spend away from his or her usual place of residence and from his or her usual working-place. For the purposes of this section, the term ‘self-employed natural person’ shall mean a person to whom an amount is paid or is payable in the course of any trade carried on by him or her independently of the person by whom such amount is paid or payable and of the person to whom the services have been or are to be rendered, as contemplated in the proviso to paragraph (ii) of the exclusions to the de nition of ‘remuneration’ in paragraph 1 of the Fourth Schedule to the Income Tax Act;
[Sub-para. (ii) substituted by GN 2695 of 8 November 1991, by s. 22 (b) of Act 136 of 1992, by s. 33 (a) of Act 27 of 1997 and by s. 84 (b) of Act 20 of 2006.]
(iii) such goods or services consist of entertainment supplied by the vendor as operator of any conveyance to a passenger or crew member, in such conveyance during a journey, where such entertainment is supplied as part of or in conjunction with the transport service supplied by the vendor, where the supply of such transport service is a taxable supply;
[Sub-para. (iii) substituted by s. 173 (1) (a) of Act 45 of 2003, by s. 102 (a) of Act 32 of 2004 and by s. 174 (1) of Act 31 of 2013 – date of commencement: 1 April 2014; the substituted subparagraph applies in respect of services supplied on or after that date.]
(iv) such goods or services consist of a meal or refreshment supplied by the vendor as organizer of a seminar or similar event to a participant in such seminar or similar event, the supply of such meal or refreshment is made during the course of or immediately before or after such seminar or similar event and a charge which covers the cost of such meal or refreshment is made by the vendor to the recipient;
[Sub-para. (iv) substituted by GN 2695 of 8 November 1991 and by s. 22 (c) of Act 136 of 1992.]
(v) such goods or services are acquired by a municipality for the purpose of providing sporting or recreational facilities or public amenities to the public;
[Sub-para. (v) substituted by s. 31 (c) of Act 97 of 1993 and by s. 48 (1) of Act 9 of 2006.]
(vi) such goods or services are acquired by a welfare organization, for the purpose of making supplies in the furtherance of its aims and objects; or
[Sub-para. (vi) added by s. 31 (d) of Act 136 of 1991.] (vii) such goods or services are acquired by a vendor for an employee or of ce holder of such vendor,
that are incidental to the admission into a medical
care facility;
[Sub-para. (vii) added by s. 173 (1) (b) of Act 45 of 2003 and substituted by s. 102 (b) of Act 32 of 2004.]
(viii) such goods or services consist of a meal or refreshment supplied by the vendor as operator of any ship or vessel (otherwise than in the circumstances contemplated in subparagraph (iii)) in such ship or vessel to a crew member of such ship or vessel, where such meal or refreshment is supplied in the course of making a taxable supply by that vendor; or
[Sub-para. (viii) added by s. 102 (c) of Act 32 of 2004.] (ix) that entertainment is acquired by the vendor for the purpose of awarding that entertainment as a prize contemplated in section 16 (3) (d) in consequence
of a supply contemplated in section 8 (13);
[Sub-para. (ix) added by s. 108 (c) of Act 31 of 2005.] [Para. (a) amended by s. 31 (b) of Act 97 of 1993.]
(b) in respect of any fees or subscriptions paid by
the vendor in respect of membership of any club, association or society of a sporting, social or recreational nature; or
(c) in respect of any motor car supplied to or imported by the vendor: Provided that—
(i) this paragraph shall not apply where that motor car is acquired by the vendor exclusively for the purpose of making a taxable supply of that motor car in the ordinary course of an enterprise which continuously or regularly supplies motor cars, whether that supply is made by way of sale or under an instalment credit agreement or by way of rental agreement at an economic rental consideration;
(ii) for the purposes of this paragraph a motor car acquired by such vendor for demonstration purposes or for temporary use prior to a taxable supply by such vendor shall be deemed to be acquired exclusively for the purpose of making a taxable supply; and
(iii) this paragraph shall not apply where—
(aa) that motor car is acquired by the vendor for the purposes of awarding that motor car as a prize contemplated in section 16 (3) (d) in consequence of a supply contemplated in
section 8 (13); or
(bb) the supply of that motor car is in the ordinary
course of an enterprise which continuously or regularly supplies motor cars as prizes to clients or customers (other than to any employee or of ce holder of the vendor or any connected person in relation to that employee, of ce holder or vendor) to the extent that it is in consequence of a taxable supply made in the course or furtherance of an enterprise; or
[Para. (c) amended by s. 108 (d) of Act 31 of 2005.]
(d) in respect of any goods or services acquired by a superannuation scheme referred to in section 2, for the purposes of the supply by such scheme of any medical or dental services or services directly connected with such medical or dental services or of any goods necessary for or subordinate or incidental
to the supply of any such services.
[Para. (d) added by GN 2695 of 8 November 1991 and by s. 22 (e) of Act 136 of 1992 and substituted by s. 17 of Act 20 of 1994.]
[Sub-s. (2) amended by s. 108 (a) of Act 31 of 2005 and by s. 84 (1) (c) of Act 8 of 2007.]
Juta’s IndIrect tax 2016
47
VALUE-ADDED TAX ACT