Page 543 - SAIT Compendium 2016 Volume1

s 76 VALUE-ADDED TAX ACT 89 OF 1991 s 78
76 . . .
[S. 76 amended by s. 46 of Act 136 of 1991 and by s. 43
of Act 97 of 1993 and repealed by s. 30 of Act 20 of 1994.]
77 Notice of variation of rate of tax
(1) The Minister may by notice in the Gazette make known for general information—
(a) that in terms of a taxation proposal tabled by him in
Parliament, the rate of tax speci ed in section 7 is to be increased to a rate set forth in that proposal and in that notice; or
(b) that it is proposed to decrease the rate of tax so mentioned to a rate set forth in that notice,
and the increased or decreased rate of tax so set forth shall, until an Act of Parliament is promulgated within six calendar months after the publication of the notice in the Gazette, by which effect is given to the proposal or other provision is made, apply for the purpose of determining amounts of tax in respect of supplies of goods and services made by vendors on any date falling on or after the date which the Minister has speci ed in the said notice for the coming into operation of such increased or decreased rate of tax, as the case may be, or in respect of importations of goods made on such date.
(2) When in any legal proceedings the question arises whether the Minister has tabled a taxation proposal referred to in subsection (1), or as to the particulars contained in that proposal, a copy of a document purporting to be printed by order of the Speaker of Parliament and to contain such proposal, shall be accepted as suf cient evidence that such proposal was tabled and of the particulars contained therein.
[S. 77 substituted by s. 31 of Act 20 of 1994.]
78 Transitional matters
(1) For the purposes of this section—
‘sales tax’ means the sales tax levied under the Sales Tax Act;
‘Sales Tax Act’ means the Sales Tax Act, 1978 (Act 103 of 1978), as in force immediately prior to its repeal by this Act.
[De nition of ‘Sales Tax Act’ substituted by s. 47 (a) of Act 136 of 1991.]
(2) (a) Where in the course of an enterprise carried on by a person registered as a vendor in terms of the Sales Tax Act that person has before the commencement date entered into an agreement for the sale of movable goods and sales tax would have been payable by him in respect of the taxable value of such sale if the said Act had not been repealed but the said tax is not payable by reason of the fact that the consideration payable by the purchaser in respect of such sale has not been paid in full before the commencement date and delivery of the said goods has not been effected before that date, the said person shall, if on the commencement date he is a vendor as de ned in section 1 of this Act, be deemed for the purposes of this Act to have supplied the said goods at the time of delivery of the said goods or the time at which any payment in respect of the said consideration is made on or after the commencement date or the time at which an invoice in respect of such sale is issued on or after that date, whichever time is earliest.
(b) Where any leased property has been leased by a vendor under the Sales Tax Act who is on the commencement date a vendor under this Act, to a lessee under a nancial lease, as de ned in section 1 of the Sales Tax Act, and such property is delivered to the lessee on or after that date, such property shall, notwithstanding
the provisions of section 9 of this Act, be deemed for the purposes of this Act to have been supplied to the lessee under an instalment credit agreement at the time of delivery of such property.
[Para. (b) substituted by s. 47 (b) of Act 136 of 1991.] (3) Where, on or after the commencement date, any amount accrues to a vendor who was a vendor for the purposes of the Sales Tax Act and the amount so accruing, or a portion thereof, would, but for the repeal of that Act, have been taken into account in the determination of a
taxable value chargeable with sales tax—
(a) in terms of section 5 (1) (c) of that Act in respect of a
rental consideration for a period which ended before
the said date; or
(b) in terms of section 5 (1) (d) of that Act in respect of a
taxable service completed before that date; or
(c) in terms of section 5 (1) (e) of that Act in respect of board and lodging supplied for a period which ended
before that date; or
(d) in terms of section 5 (1) (f) of that Act in respect of
accommodation let for a period which ended before
that date,
value-added tax shall, notwithstanding anything in this Act to the contrary, be chargeable under this Act in respect of that amount as though such amount were consideration for a supply of goods or services supplied by the vendor on the date on which that amount accrued.
(3A) This Act shall not be construed as imposing value- added tax under section 7 (1) (a) in respect of—
(a) a provision of goods under a rental agreement entered
into before the commencement date for a period which ended before that date where such goods did not constitute goods as de ned in section 1 of the Sales Tax Act; or
(b) a performance of services under an agreement entered into before that date where the performance of such services is completed before that date or such services were performed during and in respect of a period which ended before that date, if in either case such services were not taxable services as contemplated in the de nition of ‘taxable service’ in section 1 of the Sales Tax Act.
[Sub-s. (3A) inserted by s. 47 (c) of Act 136 of 1991.]
(4) Where the value of any supply of goods or services, as determined under section 10, includes any amount which has been taken into account by a vendor in the determination of a taxable value under the Sales Tax Act, and sales tax was chargeable in respect of such taxable value under section 5 of that Act or would have been so chargeable but for the provisions of section 6 of that Act, the value in respect of such supply shall for the purposes of the value-added tax be reduced by the said amount (but excluding so much of that amount as represents sales tax).
[Sub-s. (4) substituted by s. 47 (d) of Act 136 of 1991.]
(5) For the purposes of this Act, where—
(a) goods are provided under a rental agreement for a period which commences before and ends on or after
the commencement date; or
[Para. (a) substituted by s. 47 (e) of Act 136 of 1991.] (b) the performance of any services is commenced before
and is completed on or after that date; or
[Para. (b) substituted by s. 47 (e) of Act 136 of 1991.] (c) domestic goods and services are provided for a period which commences before and ends on or after that
date,
[Para. (c) substituted by s. 47 (e) of Act 136 of 1991.] 535
SAIT CompendIum oF TAx LegISLATIon VoLume 1
VALUE-ADDED TAX ACT