Page 523 - SAIT Compendium 2016 Volume1

s 27 VALUE-ADDED TAX ACT 89 OF 1991 s 27
(2) (a) Every vendor, not being a vendor who falls within category C, D or E as contemplated in subsection (3), (4) or (4A), shall fall within Category A or Category B.
[Para. (a) substituted by s. 78 (1) (b) of Act 30 of 2000, by s. 11 (1) (b) of Act 10 of 2005 and by s. 28 (1) (b) of Act 44 of 2014 - date of commencement: 1 July 2015; the substitution applies iro tax periods commencing on or after that date.]
(b) The Commissioner shall determine whether such vendor falls within Category A or Category B and notify the vendor accordingly.
(c) The determinations made by the Commissioner under paragraph (b) shall be made so as to ensure that approximately equal numbers of vendors fall within Category A and Category B.
(d) The Commissioner may from time to time direct that any vendor falling within Category A shall, with effect from the commencement of a future period, fall within Category B, or vice versa.
(3) A vendor shall fall within Category C if—
(ii) the activities of any such branch, division or separate enterprise consist solely of agricultural, pastoral or other farming activities and activities of that kind are not carried on in any other branch, division or separate enterprise of the vendor or the association not for gain, as the case may be, by whom a written application referred to in subparagraph (v) is made;
[Sub-para. (ii), previously para. (b), amended by
s. 30 (1) of Act 21 of 2012 – date of commencement: 1 March 2014.]
(a)
the total value of the taxable supplies of the vendor (including the taxable supplies of any branches, divisions or separate enterprises of the vendor registered as separate vendors under section 50 (2))—
(i) has in the period of 12 months ending on the last day of any month of the calendar year exceeded R30 million; or
[Sub-para. (i) amended by s. 1 (6) of Act 3 of 2008.]
(ii) is likely to exceed that amount in the period of 12 months beginning on the rst day of any such month; or
[Para. (a) amended by s. 34 (a) of Act 136 of 1991.]
the vendor has applied in writing for the tax periods
in his case to be on a monthly basis; or
the vendor has repeatedly made default in performing any of his obligations in terms of this Act,
[Item (aa), previously sub-para. (i), amended by s. 50 (1) (a) of Act 9 of 2006 and by s. 1 (6) of Act 3 of 2008.]
(bb) is not likely to exceed that amount in the period of 12 months commencing at the end of the period referred to in item (aa);
[Item (bb), previously sub-para. (ii), amended by s. 30 (1) of Act 21 of 2012 – date of commencement: 1 March 2014.]
(iv) the vendor does not fall within Category C; and (v) the vendor whose enterprise consists solely of agricultural, pastoral or other farming activities or the vendor referred to in section 50 (2) or the association not for gain referred to in section 23 (5), as the case may be, has made a written application to the Commissioner, in such form as the Commissioner may prescribe, for such rst-mentioned vendor or the branch, division or separate enterprise in question, as the case may
be, to be placed within Category D; or
[Sub-para. (v), previously para. (e), amended by s. 34 (d) of Act 136 of 1991.]
(b) the vendor is a micro business that is registered in terms of the Sixth Schedule to the Income Tax Act and has made written application in such form as the Commissioner may prescribe, to be placed in Category D,
and the Commissioner has directed that, with effect from the commencement date or such later date as may be appropriate, the vendor shall fall within Category D: Provided that a vendor falling within Category D shall cease to fall within that Category with effect from the commencement of a future period noti ed by the Commissioner, if written application is made by the person who made the application referred to in subparagraph (v) for the vendor to be placed within Category A, B, C or E or the Commissioner is satis ed that by reason of a change in circumstances that vendor should be placed within Category A, B, C or E.
[Words following para. (b) substituted by s. 28 (1) (d) of Act 44 of 2014 - date of commencement: 1 July 2015; the substitution applies iro tax periods commencing on or after that date.]
[Sub-s. (4) amended by s. 78 (1) (d) of Act 30 of 2000 and by s. 11 (1) (d) of Act 10 of 2005 and substituted by
s. 30 (1) of Act 21 of 2012 – date of commencement:
1 March 2014.]
(4A) A vendor shall fall within Category E if—
(b)
(c)
and the Commissioner has directed that, with effect
from the commencement date or such later date as may be appropriate, the vendor shall fall within Category C: Provided that a vendor falling within Category C shall cease to fall within that Category with effect from the commencement of a future period noti ed by the Commissioner, if the vendor has applied in writing to be placed within Category A, B, D or E and the Commissioner is satis ed that by reason of a change in the vendor’s circumstances he satis es the requirements of this section for placing within Category A, B, D or E.
[Words following para. (c) substituted by s. 28 (1) (c) of Act 44 of 2014 - date of commencement: 1 July 2015; the substitution applies iro tax periods commencing on or after that date.]
[Sub-s. (3) amended by s. 78 (1) (c) of Act 30 of 2000 and by s. 11 (1) (c) of Act 10 of 2005.]
(4) A vendor shall fall within Category D if—
(a) (i) the vendor’s enterprise consists solely of agricultural, pastoral or other farming activities or the vendor is a branch, division or separate enterprise which is deemed by subsection (5) of section 23 to be a separate person for the purposes of that section and is as such registered under that section or the vendor is a branch, division or separate enterprise registered as a separate vendor
under section 50 (2);
[Sub-para. (i), previously para. (a), amended by s. 34 (c) of Act 136 of 1991.]
(a) (b)
the vendor is a company or a trust fund;
the vendor’s enterprise consists solely of one or more of the activities of—
(i) letting of xed property or the renting of movable goods to; or
(iii)
the total value of the taxable supplies of the vendor from agricultural, pastoral or other farming activities—
(aa) has in the period of 12 months ending on the
last day of any month of the calendar year
not exceeded R1,5 million; and
SAIT CompendIum oF TAx LegISLATIon VoLume 1
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VALUE-ADDED TAX ACT