Page 56 - Juta's Indirect Tax

s 17 VALUE-ADDED TAX ACT 89 OF 1991 s 18
(2A) Subsection (2) shall not apply to input tax in respect of goods or services that are applied in the course or furtherance of a foreign donor funded project.
[Sub-s. (2A) inserted by s. 84 (c) of Act 20 of 2006 and substituted by s. 84 (1) (d) of Act 8 of 2007 and by s. 31 of Act 36 of 2007.]
(3) Notwithstanding anything in section 16 (4), where a vendor has made a supply of goods as contemplated in section 8 (10) and in respect of the acquisition thereof by the vendor a deduction of input tax under section 16 (3) was denied in terms of subsection (2) of this section, the vendor shall not be required to account for output tax in relation to such supply.
(4) Where, but for the provisions of this subsection, an amount quali es or has quali ed for a deduction under more than one provision of this Act, a deduction of such amount, or any portion thereof, shall not be made more than once in the calculation of the amount of tax payable by any person.
[Sub-s. (4) added by s. 33 (b) of Act 27 of 1997.]
18 Change in use adjustments
(1) Subject to the provisions of section 8 (2), where—
(a) goods or services have been supplied to or imported
by a vendor; or
(b) goods have been manufactured, assembled, construct-
ed or produced by him; or
(c) goods or services were deemed by subsection (4) to
have been supplied to him,
(excluding goods or services to the extent that, in respect of the acquisition of which by the vendor, a deduction of input tax was denied by section 17 (2) or would have been denied if that section had been applicable prior to the commencement date) and such goods or services were acquired, manufactured, assembled, constructed or produced by such vendor wholly or partly for the purpose of consumption, use or supply in the course of making taxable supplies or such goods were held or applied for that purpose, such goods or services shall—
(i) iftheyaresubsequentlyappliedbyhim(otherwisethan in the circumstances contemplated in section 8 (9)) wholly for a purpose other than the said purpose; or
(ii) if they are subsequently applied by him wholly for a purpose in respect of which, if such goods or services had been acquired by him at the time of such application, a deduction of input tax would have been denied in terms of section 17 (2) (a) or (c),
be deemed to have been supplied by him by way of a taxable supply by him in the course of his enterprise. [Sub-s. (1) amended by s. 32 (a) of Act 136 of 1991 and by
s. 34 (a) of Act 27 of 1997.] (2) Where—
(a) capital goods or services have been supplied to or imported by a vendor; or
[Para. (a) substituted by s. 23 (a) of Act 136 of 1992.] (b) capital goods have been manufactured, assembled,
course of making taxable supplies or such goods were held or applied for that purpose, such goods or services shall, if the extent of the application or use of such goods or services in the course of making taxable supplies (in respect of which, if such goods or services had been acquired at the time of such application or use, a deduction of input tax would not have been denied in terms of section 17 (2) (a)) is subsequently reduced in relation to their total application or use, be deemed to have been supplied by him by way of a taxable supply by him in the course of his enterprise at the time at which such reduction is deemed by subsection (6) to take place: Provided that this subsection does not apply to—
(i) capitalgoodsorserviceswhichhaveanadjustedcostof less than R40 000 (excluding tax) or where such goods or services were deemed to be supplied to the vendor by subsection (4) if the amount which was represented by ‘B’ in the formula contemplated in that subsection was less than R40 000 when such goods or services were deemed to be supplied to such vendor;
[Para. (i) amended by s. 49 (1) (a) of Act 9 of 2006.]
(ii) capital goods or services acquired by a public authority or public entity listed in Part A or C of Schedule 3 to the Public Finance Management Act, 1999 (Act 1 of 1999), if the goods or services were acquired prior to 1 April 2005 or if an input tax deduction in respect thereof was
denied under proviso (iv) to section 18 (4); or
(iii) capital goods or services acquired by a municipality, if the goods or services were acquired prior to 1 July 2006 or if an input tax deduction in respect thereof was denied in terms of paragraph (v) of the proviso to
section 18 (4).
[Para. (iii) added by s. 49 (1) (b) of Act 9 of 2006.]
[Sub-s. (2) amended by s. 32 (b) of Act 136 of 1991, by s. 34 (b) of Act 27 of 1997, by s. 174 (a) of Act 45 of 2003 and by s. 109 (1) (a) of Act 31 of 2005.]
(3) Notwithstanding anything in this section, to the extent that any vendor has or is deemed to have granted a bene t or advantage to an employee or the holder of any of ce as contemplated in paragraph (i) of the de nition of ‘gross income’ in section 1 of the Income Tax Act, read with the Seventh Schedule to that Act, and such bene t or advantage consists of a supply of goods or services, the granting of that bene t or advantage shall be deemed to be a supply of goods or services made by the vendor in the course of an enterprise carried on by the vendor: Provided that this subsection shall not apply to any such bene t or advantage to the extent that it has arisen by virtue of any supply of goods or services which is an exempt supply in terms of section 12 of this Act or is a supply which is charged with tax at the rate of zero per cent in terms of section 11 of this Act or is a supply of entertainment: Provided further that this subsection shall not apply to any such bene t or advantage to the extent that it is granted by the vendor in the course of making exempt supplies.
[Sub-s. (3) substituted by s. 32 (c) of Act 136 of 1991.] (4) Where—
(c)
constructed or produced by him; or
[Para. (b) substituted by s. 23 (a) of Act 136 of 1992.] capital goods or services were deemed by subsection (4) to have been supplied to him,
(a)
(i) goods or services have been supplied to or imported by a person prior to the commencement date; or (ii)goods have been manufactured, assembled,
constructed or produced by him prior to the
commencement date,
and such goods or services were acquired, manu- factured, assembled, constructed or produced or applied by such person wholly for purposes other than that of consumption, use or supply in the course of making supplies in the course of an activity which was an enterprise or would have been an enterprise if section 1 had been applicable prior to the date of
[Para. (c) substituted by s. 23 (a) of Act 136 of 1992.] (excluding goods or services to the extent that, in respect of
the acquisition of which by the vendor, a deduction of input tax was denied by section 17 (2) or would have been denied if that section had been applicable prior to the commencement date) and such goods or services were acquired, manufactured, assembled, constructed or produced by such vendor wholly or partly for the purpose of consumption, use or supply in the
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Juta’s IndIrect tax 2016