VALUE-ADDED TAX ACT 89 OF 1991 - GoLegal

1 VALUE-ADDED TAX ACT 89 OF 1991 [ASSENTED TO 5 JUNE 1991] [DATE OF COMMENCEMENT: 30 SEPTEMBER 1991] (Unless otherwise indicated) (English text signed by the State President) as amended by Taxation Laws Amendment Act 136 of 1991 Government Notice 2695 of 8 November 1991 Taxation Laws Amendment Act 136 of 1992 Government Notice 2244 of 31 July 1992 VALUE-ADDED Tax Amendment Act 61 of 1993 Taxation Laws Amendment Act 97 of 1993 Revenue Laws Amendment Act 140 of 1993 Taxation Laws Amendment Act 20 of 1994 Taxation Laws Amendment Act 37 van 1996 Revenue Laws Amendment Act 46 of 1996 Taxation Laws Amendment Act 27 of 1997 South African Revenue Service Act 34 of 1997 Taxation Laws Amendment

2 Act 30 of 1998 Government Notice 1505 of 20 November 1998 Revenue Laws Amendment Act 53 of 1999 Government Notice 184 of 25 February 2000 Government Notice 541 of 22 April 1999 Government Notice 1065 of 1 September 1999 Taxation Laws Amendment Act 30 of 2000 Revenue Laws Amendment Act 59 of 2000 Taxation Laws Amendment Act 5 of 2001 Revenue Laws Amendment Act 19 of 2001 Second Revenue Laws Amendment Act 60 of 2001 Taxation Laws Amendment Act 30 of 2002 Revenue Laws Amendment Act 74 of 2002 Exchange Control Amnesty and Amendment of Taxation Laws Act 12 of 2003 Revenue Laws Amendment Act 45 of 2003 Taxation Laws Amendment Act 16 of 2004 Revenue Laws Amendment Act 32 of 2004 Second Revenue Laws Amendment Act 34 of 2004 Taxation Laws Amendment Act 9 of 2005 Taxation Laws Second Amendment Act 10 of 2005 Revenue Laws Amendment Act 31 of 2005 Revenue Laws Second Amendment Act 32 of 2005 National Credit Act 34 of 2005 Regulations under this Act DETERMINATION OF WELFARE ACTIVITIES FOR PURPOSES OF THE DEFINITION OF "WELFARE

3 ORGANISATION" IN SECTION 1 OF THE value added TAX, ACT, 1991 PROCEDURES FOR SUBMITTING RETURNS IN ELECTRONIC FORMAT AND REQUIREMENTS FOR ELECTRONIC SIGNATURES REGULATIONS TO CALCULATE THE TAX PAYABLE IN TERMS OF THE SMALL RETAILERS VAT PACKAGE ACT To provide for taxation in respect of the supply of goods and services and the importation of goods; to amend the Transfer Duty Act, 1949, so as to provide for an exemption; to amend the Stamp Duties Act, 1968, so as to provide for an exemption from stamp duty and to discontinue the levying of certain stamp duties; to repeal the Sales Tax Act, 1978; and to provide for matters connected therewith.

4 BE IT ENACTED by the State President and the Parliament of the Republic of South Africa, as follows:- Cases ARRANGEMENT OF SECTIONS 2 Section 1 Definitions 2 Financial services 3 Determination of 'open market value ' PART I ADMINISTRATION 4 Act to be administered by Commissioner 5 Exercise of powers and performance of duties 6 Secrecy PART II VALUE-ADDED TAX 7 Imposition of VALUE-ADDED tax 8 Certain supplies of goods or services deemed to be made or not made 9 Time of supply 10 value of supply of goods or services 11 Zero rating 12 Exempt supplies 13 Collection of tax on

5 Importation of goods, determination of value thereof and exemptions from tax 14 Collection of VALUE-ADDED tax on imported services, determination of value thereof and exemptions from tax 15 Accounting basis 16 Calculation of tax payable 17 Permissible deductions in respect of input tax 18 Adjustments 18A Adjustments in consequence of acquisition of going concern wholly or partly for purposes other than making taxable supplies [S. 18A inserted by s. 24 of Act 136 of 1992.] 19 Goods or services acquired before incorporation 20 Tax invoices 21 Credit and debit notes 22 Irrecoverable debts PART III REGISTRATION 23 Registration of persons making supplies in the course of enterprises 24 Cancellation of registration 25 Vendor to notify change of status 26 Liabilities not affected by person ceasing to be vendor PART IV RETURNS, PAYMENTS AND ASSESSMENTS 27 Tax period 28 Returns and payments of tax 29 Special returns 30 Other returns 31 Assessments 31A Reduced assessments [S.]

6 31A inserted by s. 181 of Act 45 of 2003.] 31B Withdrawal of assessments [S. 31B inserted by s. 181 of Act 45 of 2003.] PART V OBJECTIONS AND APPEALS 32 Objections to certain decisions or assessments 33 Appeals to tax court [S. 33 amended by s. 160 (a) of Act 60 of 2001.] 33A Appeals to specially constituted board [S. 33A inserted by s. 36 (1) of Act 136 of 1991.] 34 Appeals against decisions of tax court [S. 34 amended by s. 162 (a) of Act 60 of 2001.] 3 35 Members of tax court not disqualified from adjudicating [S.

7 35 amended by s. 163 (a) of Act 60 of 2001.] 36 Payment of tax pending appeal 37 Burden of proof PART VI PAYMENT, RECOVERY AND REFUND OF TAX 38 Manner in which tax shall be paid 39 Penalty and interest for failure to pay tax when due 40 Recovery of tax 40A Liability of public authorities and certain public entities for tax and limitation of refunds [S. 40A inserted by s. 23 of Act 9 of 2005.] 41 Liability for tax in respect of certain past supplies or importations 42 Evidence as to assessments 43 Security for tax 44 Refunds 45 Interest on delayed refunds 45A Calculation of interest payable under this Act [S.

8 45A inserted by s. 5 of Act 61 of 1993.] PART VII REPRESENTATIVE VENDORS 46 Persons acting in a representative capacity 47 Power to appoint agent 48 Liability of representative vendors 49 Remedies of Commissioner against agent or trustee PART VIII SPECIAL PROVISIONS 50 Separate enterprises, branches and divisions 50A Separate persons carrying on same enterprise under certain circumstances deemed to be single person [S. 50A inserted by s. 44 of Act 27 of 1997.] 51 Bodies of persons, corporate or unincorporate (other than companies) 52 Pooling arrangements 53 Death or insolvency of vendor 54 Agents and auctioneers PART IX COMPLIANCE 55 Records 56.

9 [S. 56 repealed by s. 23 of Act 46 of 1996.] 57 General provisions with regard to information, documents or things [S. 57 substituted by s. 24 of Act 46 of 1996.] 57A Furnishing of information, documents or things by any person [S. 57A inserted by s. 24 of Act 46 of 1996.] 57B Obtaining of information, documents or things at certain premises [S. 57B inserted by s. 24 of Act 46 of 1996.] 57C Inquiry [S. 57C inserted by s. 24 of Act 46 of 1996.] 57D Search and Seizure [S. 57A inserted by s. 24 of Act 46 of 1996.]

10 ] 58 Offences 59 Offences and penalties in regard to tax evasion 60 Additional tax in case of evasion 61 Recovery of tax from recipient 62 Publication of names of tax offenders 63 Reporting of unprofessional conduct PART X MISCELLANEOUS 64 [S. 64 substituted by s. 36 of Act 136 of 1992.] 4 65 Prices advertised or quoted to include tax 66 Rounding-off of the tax [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 67A Application of increased or reduced tax rate [S.