Page 520 - SAIT Compendium 2016 Volume1

s 22 VALUE-ADDED TAX ACT 89 OF 1991 s 23
a vendor which is a member of a group of companies, to another vendor which is a member of the same group of companies for as long as both vendors are members of the same group of companies.
[Sub-s. (3A) inserted by s. 140 (1) (d) of Act 24 of 2011 – date of commencement: 10 January 2012.]
(4) If a vendor who has accounted for tax payable in accordance with subsection (3) at any time thereafter pays any portion of the consideration in respect of the supply in question, he may in terms of section 16 (3) make a deduction of input tax of an amount equal to the tax fraction, as applicable at the time of the deduction contemplated in paragraph (a) of the said subsection (3), of that portion of the consideration so paid.
[Sub-s. (4) added by s. 25 of Act 37 of 1996.]
(5) . . .
[Sub-s. (5) added by s. 25 of Act 37 of 1996 and deleted by s. 177 of Act 45 of 2003.]
(6) (a) Where a vendor which is a member of a group of companies makes a taxable supply to another vendor which is a member of the same group of companies, the vendor who made the taxable supply may not make a deduction in terms of subsection (1) read with section 16 (3) of any amount of tax that has become irrecoverable for as long as both vendors are members of the same group of companies.
(b) For the purposes of paragraph (a) and subsection (3A), a ‘group of companies’ means a group of companies as de ned in section 1 of the Income Tax Act if any other company would be part of the same group of companies as that company if the expression ‘at least 70 per cent of the equity shares of’ in paragraphs (a) and (b) of that de nition were replaced by the expression ‘100 per cent of the equity shares of’.
[Sub-s. (6) added by s. 140 (1) (e) of Act 24 of 2011 – date of commencement: 10 January 2012.]
PART III REGISTRATION (ss. 23–26)
23 Registration of persons making supplies in the course of enterprises
(1) Every person who, on or after the commencement date, carries on any enterprise and is not registered, becomes liable to be registered—
(a) at the end of any month where the total value of taxable
supplies made by that person in the period of 12 months ending at the end of that month in the course of carrying on all enterprises has exceeded R1 million;
[Para. (a) amended by s. 92 (a) of Act 53 of 1999 and by s. 1 (6) of Act 3 of 2008 and substituted by s. 113 (1) (a) of Act 60 of 2008.]
(b) at the commencement of any month where the total value of the taxable supplies in terms of a contractual obligation in writing to be made by that person in the period of 12 months reckoned from the commencement of the said month will exceed the above-mentioned amount:
[Para. (b) substituted by s. 178 (1) (a) of Act 31 of 2013 – date of commencement: 1 April 2014.]
Provided that the total value of the taxable supplies of the vendor within the period of 12 months referred to in paragraph (a) or the period of 12 months referred to in paragraph (b) shall not be deemed to have exceeded or be likely to exceed the amount contemplated in paragraph (a), where the Commissioner is satis ed that the said total value will exceed or is likely to exceed such amount solely as a consequence of—
(i) any cessation of, or any substantial and permanent reduction in the size or scale of, any enterprise carried on by that person; or
(ii) the replacement of any plant or other capital asset used in any enterprise carried on by that person; or
(iii) abnormal circumstances of a temporary nature.
[Sub-s. (1) amended by s. 92 (b) of Act 53 of 1999 and by s. 24 of Act 4 of 2008.]
(1A) Every person who carries on any enterprise as contemplated in paragraph (b) (vi) of the definition of ‘enterprise’ in section 1 and is not registered becomes liable to be registered at the end of any month where the total value of taxable supplies made by that person has exceeded R50 000.
[Sub-s. (1A) inserted by s. 178 (1) (b) of Act 31 of 2013 – date of commencement: 1 April 2014; the inserted subsection applies in respect of electronic services supplied on or after that date.]
(2) Every person who is not a resident of the Republic, and who in terms of subsection (1) or section 50A, becomes liable to be registered in accordance with Chapter 3 of the Tax Administration Act, shall be deemed not to have applied for registration, in addition to section 22 (4) of the Tax Administration Act, until such person has—
(a) appointed a representative vendor as contemplated
in section 46 in the Republic and furnished the Commissioner with the particulars of such representative vendor;
(b) opened a banking account with any bank, mutual bank or other similar institution, registered in terms of the Banks Act, 1990 (Act 94 of 1990), for the purposes of his or her enterprise carried on in the Republic and furnished the Commissioner with the particulars of such banking account.
[Sub-s. (2) substituted by s. 37 of Act 27 of 1997, amended by s. 113 (1) (b) of Act 60 of 2008 and by s. 37 (1) (a) of Act 18 of 2009 and substituted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(3) Notwithstanding the provisions of subsections (1) and (2), every person who satis es the Commissioner that, on or after the commencement date—
(a) that person is a ‘municipality’ as de ned in section 1
or is carrying on any enterprise as contemplated in paragraph (b) (ii), (iii) or (v) of the de nition of ‘enterprise’ in section 1; or
[Para. (a) substituted by s. 36 of Act 32 of 2005 and by s. 14 (1) of Act 10 of 2006.]
(b)
that person—
(i) is carrying on any enterprise and the total value of
taxable supplies made by that person in the course of carrying on all enterprises in the preceding period of 12 months has exceeded R50 000; or
(ii) subject to the provisions of section 15 (2B) and any regulation made by the Minister in terms of this Act, is carrying on any enterprise where the total value of taxable supplies made or to be made by that person has not exceeded R50 000 but can reasonably be expected to exceed that amount within 12 months from the date of registration,
other than any enterprise—
(AA) as contemplated in paragraph (b) (ii) or (iii)
of the definition of ‘enterprise’ in section 1;
or
(BB) that is a ‘municipality’ as defined in section 1;
[Para. (b) substituted by s. 14 (1) of Act 10 of 2006, amended by s. 1 (6) of Act 3 of 2008 and by s. 93 (1) (a) of Act 17 of 2009 and substituted by s. 178 (1) (c) of Act 31 of 2013 – date of commencement: 1 April 2014.]
(c) that person intends to carry on any enterprise from a speci ed date, where that enterprise will be supplied
512 SAIT CompendIum oF TAx LegISLATIon VoLume 1