Page 524 - SAIT Compendium 2016 Volume1

s 27
VALUE-ADDED TAX ACT 89 OF 1991 s 28
(c) (d)
(e)
(ii) the administration or management of, companies which are connected persons in relation to the vendor;
the recipients of those supplies are all registered vendors and are entitled to deductions of the full amount of tax in respect of those supplies;
tax invoices are issued once a year and payments of consideration for these supplies, by agreement between the parties, only become due once a year at the end of the ‘year of assessment’ as de ned in section 1 of the Income Tax Act of the vendor making the supplies; and
the vendor has made written application to the Commissioner in such form as the Commissioner may prescribe, to be placed in Category E,
(i) any cessation of, or any substantial or permanent reduction in the size or scale of, any enterprise carried on by the vendor; or
(ii) the replacement of any plant or other capital asset used in any enterprise carried on by the vendor; or
(iii) abnormal circumstances of a temporary nature.
[Para. (b) amended by s. 50 (1) (c) of Act 9 of 2006 and by s. 25 (1) of Act 4 of 2008.]
(6) The tax periods applicable under this Act to any vendor shall be the tax periods applicable to the Category within which the vendor falls as contemplated in this section: Provided that—
(i) the rst such period shall commence on the commencement date or, where any person becomes a vendor on a later date, such later date;
(ii) any tax period ending on the last day of a month, as applicable in respect of the relevant Category, may, instead of ending on such last day, end on a xed day approved by the Commissioner, which day shall fall within 10 days before or after such last day: Provided that the future tax period so approved by the Commissioner must be used by the vendor for a minimum period of 12 months commencing from the tax period the change is made;
(iii) the rst day of any tax period of the vendor subsequent to the vendor’s rst tax period shall be the rst day following—
(a) the last day of the vendor’s preceding tax period; or
(b) the xed day as approved by the Commissioner in terms of paragraph (ii).
[Sub-s. (6) amended by GN 2695 of 8 November 1991, by s. 28 of Act 136 of 1992 and by s. 78 (1) (f) of Act 30 of 2000 and substituted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
28 Returns and payments of tax
(1) Every vendor shall, within the period ending on the twenty- fth day of the rst month commencing after the end of a tax period relating to such vendor or, where such tax period ends on or after the rst day and before the twenty- fth day of a month, within the period ending on such twenty- fth day—
[Words preceding para. (a) in sub-s. (1) substituted by s. 31 (a) of Act 21 of 2012 – date of commencement: 20 December 2012.]
(a) furnish the Commissioner with a return re ecting such information as may be required for the purpose of the calculation of tax in terms of section 14 or 16; and
[Para. (a) substituted by s. 37 (a) of Act 32 of 2005 and by s. 31 of Act 8 of 2010.]
(b) calculate the amounts of such tax in accordance with the said section and pay the tax payable to the Commissioner or calculate the amount of any refund due to the vendor:
Provided that— (i) ...
[Para. (i) deleted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(ii) where payment of the full amount of the tax is effected by means of a debit order and the requirements for the transfer of the tax have been met by the vendor, such debit order shall not be effected prior to the last business day of the month during which the said twenty- fth day falls and the period within which the tax is required to be paid shall be deemed to end on the last business day of such month;
[Para. (ii) substituted by s. 32 of Act 36 of 2007.]
and the Commissioner has directed that, with effect from a date which he considers appropriate, the vendor shall fall within Category E: Provided that a vendor falling within Category E shall cease to fall within that Category with effect from a date noti ed by the Commissioner if—
(i) written application is made by the person who made the application referred to in paragraph (e) for the vendor to be placed in a different Category; or
(ii) the Commissioner is satis ed that by reason of a change in circumstances, that vendor should be placed in Category A, B, C or D; or
[Para. (ii) substituted by s. 11 (1) (e) of Act 10 of 2005.]
[Para. (ii) substituted by s. 11 (1) (e) of Act 10 of 2005 and by s. 28 (1) (e) of Act 44 of 2014 - date of commencement: 1 July 2015; the substitution applies iro tax periods commencing on or after that date.]
(iii) the vendor’s placing in Category E results in any nancial loss (including any loss of interest) to the State.
[Sub-s. (4A) inserted by s. 78 (1) (e) of Act 30 of 2000.]
(4B) . . .
[Sub-s. (4B) inserted by s. 11 (1) (f) of Act 10 of 2005, amended by s. 50 (1) (b) of Act 9 of 2006 and by s. 1 (6) of Act 3 of 2008 and deleted by s. 28 (1) (f) of Act 44 of 2014 – date of commencement: 1 July 2015; the deletion applies iro tax periods commencing on or after that date.]
(5) For the purposes of subsection (3) (a) and subsection (4) (a) (iii)—
[Words preceding para. (a) substituted by s. 22 (1) (a) of Act 39 of 2013 – date of commencement: 1 March 2014; the substituted wording applies in respect of tax periods commencing on or after that date.]
(a) the provisions of this Act relating to the determination of the value of any supply of goods or services, whether such supply is made before or on or after the commencement date, shall apply for the purposes of this paragraph, but no regard shall be had to any tax charged in respect of such supply; and
(b) the total value of the taxable supplies of a vendor within any period of 12 months referred to in subsection (3) (a) or (4) (a) (iii) shall not be deemed to have exceeded or be likely to exceed the amount referred to in subsection (3) (a) or the amount referred to in subsection (4) (a) (iii), as the case may be, where that total value exceeds or is likely to exceed that amount, as the case may be, solely as a consequence of—
[Words preceding sub-para. (i) substituted by s. 22 (1) (b) of Act 39 of 2013 – date of commencement: 1 March 2014; the substituted wording applies in respect of tax periods commencing on or after that date.]
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SAIT CompendIum oF TAx LegISLATIon VoLume 1