Page 539 - SAIT Compendium 2016 Volume1

s 63 VALUE-ADDED TAX ACT 89 OF 1991 s 67
63 . . .
[S. 63 amended by s. 29 of Act 37 of 1996 and repealed by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
PART X MISCELLANEOUS (ss. 64–87)
64 Prices deemed to include tax
(1) Any price charged by any vendor in respect of any taxable supply of goods or services shall for the purposes of this Act be deemed to include any tax payable in terms of section 7 (1) (a) in respect of such supply, whether or not the vendor has included tax in such price.
(2) The amount of any deposit payable to or refundable by a vendor in respect of a returnable container shall be deemed to include tax.
[S. 64 substituted by GN 2695 of 8 November 1991 and by
s. 36 of Act 136 of 1992.]
65 Prices advertised or quoted to include tax
Any price advertised or quoted by any vendor in respect of any taxable supply of goods or services shall include tax and the vendor shall in his advertisement or quotation state that the price includes tax, unless the total amount of the tax chargeable under section 7 (1) (a), the price excluding tax and the price inclusive of tax for the supply are advertised or quoted by the vendor: Provided that—
(i) where the price inclusive of tax and the price excluding tax for a supply are advertised or quoted, both prices shall be advertised or quoted with equal prominence and impact;
(ii) price tickets on goods need not state that the prices include tax if this is stated by way of a notice prominently displayed at all entrances to the premises in which the enterprise is carried on and at all points in such premises where payments are effected;
(iii) the Commissioner may in the case of any vendor or class of vendors approve any other method of displaying prices of goods or services by such vendor or class of vendors or, where the rate of tax is increased or reduced, the date on which the increased or reduced rate of tax takes effect;
[Para. (iii) substituted by s. 103 (1) of Act 43 of 2014 – date of commencement: 1 April 2015.]
(iv) a vendor may not state or imply that any form of trade, cash or any other form of discount or refund is in lieu of the tax chargeable in terms of section 7 (1) (a).
[Para. (iv) added by s. 174 of Act 60 of 2001.]
[S. 65 amended by GN 2695 of 8 November 1991 and by s. 37 of Act 136 of 1992.]
66 Rounding-off of the tax
An amount of tax determinable under this Act must be calculated by—
(a) where the tax fraction is expressed as—
(i) a proportion, rounding it off to the fth decimal place namely 0,12280; or
(ii) a percentage, rounding it off to the third decimal place, namely 12,280; and
(b) rounding fractions of—
(i) less than half a cent, down to the last cent; or
(ii) half a cent or more, up to the next cent.
[S. 66 substituted by s. 175 of Act 60 of 2001.]
67 Contract price or consideration may be varied according to rate of value-added tax
(1) Whenever the value-added tax is imposed for the rst time in terms of this Act or the rate of tax applicable under section 7 (1) is increased in respect of any supply of goods or services in relation to which any agreement was entered into by the acceptance of an offer made before the tax was imposed for the rst time in terms of this Act or the rate of tax applicable under section 7 (1) was increased, as the case may be, the vendor may, unless agreed to the contrary in any agreement in writing and notwithstanding anything to the contrary contained in any law, recover from the recipient, as an addition to the amounts payable by the recipient to the vendor, a sum equal to any amount payable by the vendor by way of the said tax or increase, as the case may be, and any amount so recoverable by the vendor shall, whether it is recovered or not, be accounted for by the vendor under the provisions of this Act as part of the consideration in respect of the said supply.
[Sub-s. (1) substituted by GN 2695 of 8 November 1991, by s. 38 (a) of Act 136 of 1992, by s. 30 (a) of Act 37 of 1996 and by s. 104 (1) (a) of Act 43 of 2014 – date of commencement: 1 April 2015.]
(2) Whenever the value-added tax is withdrawn or the rate of tax applicable under section 7 (1) is decreased in respect of any supply of goods or services in relation to which any agreement was entered into by the acceptance of an offer made before the tax was withdrawn or the rate of tax applicable under section 7 (1) was decreased, as the case may be, the vendor shall, unless agreed to the contrary in any agreement in writing and notwithstanding anything to the contrary contained in any law, reduce the amount payable to the vendor by the recipient by way of any consideration in which the amount of such tax was included, by a sum equal to the amount of the tax withdrawn or the amount by which the rate of tax applicable under section 7 (1) was decreased, as the case may be.
[Sub-s. (2) substituted by s. 30 (b) of Act 37 of 1996 and by s. 104 (1) (a) of Act 43 of 2014 – date of commencement: 1 April 2015.]
(3) Whenever the value-added tax is imposed for the rst time in terms of this Act or withdrawn or the rate of tax applicable under section 7 (1) is increased or decreased, as the case may be, in respect of any supply of goods or services subject to any fee, charge or other amount (whether it is a xed, maximum or minimum fee, charge or other amount) prescribed by, or determined pursuant to, any Act or by any regulation or measure having the force of law, that fee, charge or other amount may be increased or shall be decreased, as the case may be, by the amount of tax or additional tax charged or chargeable or the amount of tax no longer charged or chargeable, as the case may be: Provided that this subsection shall not apply to any fee, charge or other amount if such fee, charge or other amount has been altered in any Act, regulation or measure prescribing or determining such fee, charge or other amount to take account of any imposition of tax for the rst time in terms of this Act or withdrawal of such tax or increase or decrease in the rate of tax applicable under section 7 (1): Provided further that this subsection shall not be construed so as to permit any further increase or require a further decrease, as the case may be, in a fee, charge or other amount referred to in this subsection, where such fee, charge or other amount is calculated as a percentage or fraction of another amount which represents the consideration in money for a taxable supply of goods or
SAIT CompendIum oF TAx LegISLATIon VoLume 1 531
VALUE-ADDED TAX ACT