Page 544 - SAIT Compendium 2016 Volume1

s 78 VALUE-ADDED TAX ACT 89 OF 1991 s 78
the value of the supply, as determined under this Act, shall not be reduced to take account of any portion thereof made before the said date: Provided that—
(i) where the goods referred to in paragraph (a) consist of xed property, there shall be excluded from the rental consideration for the supply so much of such consideration as is attributable to the portion of the period referred to in that paragraph which ends before the said date;
(ii) where the services referred to in paragraph (b) were not taxable services for the purposes of the Sales Tax Act—
(aa) any progress payment in respect of that portion
of the services performed before the said date
shall for the purposes of this Act be ignored; and (bb) where any payment becomes due or is received in respect of services which were not taxable services for the purposes of the Sales Tax Act and which are commenced before and completed on or after the said date, that portion of the payment which, on the basis of a fair and reasonable apportionment, is attributable to the portion of the services performed before the said date shall be
excluded from the consideration for the supply. (6) Where any payment is made or an invoice is issued on or after the date of promulgation of this Act and before the commencement date in respect of consideration for the supply of any goods or services (not being a transaction in respect of which a taxable value is subject to sales tax), a supply of such goods or services shall be deemed to have been made on the commencement date to the extent to which such payment or invoice relates to the provision of goods or the performance of services on or after the commencement date: Provided that this subsection shall not apply in respect of any payments customarily made or invoices customarily issued, when made or issued at regular intervals for the provision of goods or performance
of services still to be provided or performed.
[Sub-s. (6) substituted by s. 47 (f) of Act 136 of 1991.]
(7) (a) In the case of a vendor who was on the day before the commencement date a vendor for the purposes of the Sales Tax Act an adjustment shall be made in the manner provided in paragraphs (c) and (d) in respect of sales tax attributable to any amount which would, but for the repeal of that Act, have been accounted for under paragraph (d), (i), (iv) or (vi) of subsection (2) of section 11 of that Act.
(b) The sales tax attributable to such amount shall be determined by applying the formula
___r___ 3 t, 100 + r
in which formula ‘r’ is the rate of sales tax, expressed as a percentage, which was in force on the day before the commencement date and ‘t’ is the said amount.
(c) The adjustment shall be made in the tax period of the vendor under this Act which, as nearly as possible, corresponds with the tax period of the vendor which would, but for the repeal of the Sales Tax Act, have applied under that Act.
(d) The adjustment shall be made by including in the amounts of output tax accounted for under section 16 (3) of this Act in respect of the relevant tax period under this Act the amount of sales tax attributable to the amount that would have been accounted for under paragraph (d) of subsection (2) of section 11 of the Sales Tax Act and by including in the amounts of input tax accounted for under the said section 16 (3) such amount as would have been accounted for under paragraph (i), (iv) or (vi) of the said subsection (2).
(8) Where, in the case of a vendor who was for the purposes of the Sales Tax Act a liquor trader as de ned in paragraph 1 of the Schedule to Government Notice 339 published in Government Gazette 10615 on 20 February 1987, an amount of an excess referred to in paragraph 4 (2) of that Schedule could, but for the repeal of the Sales Tax Act, have been carried forward from the tax period under that Act ending on the day before the commencement date, that amount shall, if on that date he continued to carry on the trade of selling liquor, for the purposes of section 16 (3) of this Act be deemed to be input tax paid by him in respect of a supply of liquor made to him on that date.
(9) (a) Notwithstanding the provisions of subsection (6), where xed property has been disposed of under an agreement for the sale of such property concluded before the commencement date, the disposal of such property under such sale shall be deemed not to be a supply of goods for the purposes of this Act: Provided that where an agreement for the construction of improvements on such property has been concluded before the said date and the consideration payable under such agreement is in terms of section 6 (1) (c) of the Transfer Duty Act, 1949 (Act 40 of 1949), required for the purpose of the payment of transfer duty to be added to the consideration payable in respect of the acquisition of such property, such agreement and the agreement for the sale of the property shall for the purposes of this paragraph be deemed to be one agreement for the sale of the property.
[Para. (a) substituted by s. 47 (h) of Act 136 of 1991 and amended by GN 2695 of 8 November 1991 and by s. 42 (a) of Act 136 of 1992.]
(aA) Where an agreement for the sale of xed property consisting of any dwelling together with land on which it is erected, or of any real right conferring a right of occupation of a dwelling or of any unit as de ned in section 1 of the Sectional Titles Act, 1986 (Act 95 of 1986), such unit being a dwelling, or of any share in a share block company which confers a right to or an interest in the use of a dwelling, was concluded on or before 31 March 1992 by a vendor who at the time of such sale holds such xed property as trading stock, such sale shall, if the dwelling concerned was completed within 12 months before the commencement date, be deemed not to be a supply of goods for the purposes of this Act.
[Para. (aA) inserted by GN 2695 of 8 November 1991 and by s. 42 (b) of Act 136 of 1992.]
(aB) Where an agreement (other than an agreement referred to in paragraph (aC)) for the sale of xed property consisting of land, or of any real right conferring a right of occupation of land, was concluded on or after the commencement date and on or before 31 March 1992 for the sole or principal purpose of the erection by or for the purchaser of a dwelling or dwellings on the land, as con rmed by the purchaser in writing, the tax chargeable under section 7 (1) (a) in respect of the supply of the land or real right under such sale shall be reduced to an amount equal to 6 per cent of the value of the supply.
[Para. (aB) inserted by GN 2695 of 8 November 1991 and by s. 42 (b) of Act 136 of 1992.]
(aC) Where xed property includes a dwelling, and— (i) the erection of the dwelling was completed on or after 30 September 1991 and on or before 31 December 1991 and an agreement for the sale of such xed property was concluded on or after 22August 1991 and on or before 31 December 1991, the tax chargeable under section 7 (1) (a) in respect of the supply of the xed property under such sale shall be
536 SAIT CompendIum oF TAx LegISLATIon VoLume 1