VALUE-ADDED TAX ACT NO. 89 OF 1991 - …

1 VALUE-ADDED TAX ACT NO. 89 OF 1991 [View Regulation] [ASSENTED TO 5 JUNE, 1991] [DATE OF COMMENCEMENT: 30 SEPTEMBER, 1991] (English text signed by the President) This Act has been updated to Government Gazette 40004 dated 20 May, 2016. as amended by Taxation Laws Amendment Act, No. 136 of 1991 Taxation Laws Amendment Act, No. 136 of 1992 VALUE-ADDED Tax Amendment Act, No. 61 of 1993 Taxation Laws Amendment Act, No. 97 of 1993 Revenue Laws Amendment Act, No. 140 of 1993 [with effect from 13 October, 1993] Taxation Laws Amendment Act, No. 20 of 1994 Taxation Laws Amendment Act, No. 37 of 1996 Revenue Laws Amendment Act, No. 46 of 1996 Taxation Laws Amendment Act, No. 27 of 1997 South African Revenue Service Act, No. 34 of 1997 Taxation Laws Amendment Act, No.

2 30 of 1998 Government Notice No. 1505 of 1998 Government Notice No. 541 of 1999 Government Notice No. 1065 of 1999 Revenue Laws Amendment Act, No. 53 of 1999 Government Notice No. 184 of 2000 Taxation Laws Amendment Act, No. 30 of 2000 Revenue Laws Amendment Act, No. 59 of 2000 Taxation Laws Amendment Act, No. 5 of 2001 Revenue Laws Amendment Act, No. 19 of 2001 Second Revenue Laws Amendment Act, No. 60 of 2001 Taxation Laws Amendment Act, No. 30 of 2002 Government Notice No. 1160 of 2002 Revenue Laws Amendment Act, No. 74 of 2002 Government Notice No. in Government Gazette 24274 of 17 January, 2003 Exchange Control Amnesty and Amendment of Taxation Laws Act, No. 12 of 2003 Revenue Laws Amendment Act, No. 45 of 2003 Taxation Laws Amendment Act, No.

3 16 of 2004 Revenue Laws Amendment Act, No. 32 of 2004 Second Revenue Laws Amendment Act, No. 34 of 2004 Taxation Laws Amendment Act, No. 9 of 2005 Taxation Laws Second Amendment Act, No. 10 of 2005 Revenue Laws Amendment Act, No. 31 of 2005 Revenue Laws Second Amendment Act, No. 32 of 2005 National Credit Act, No. 34 of 2005 [with effect from 1 June, 2006, unless otherwise indicated] Small Business Tax Amnesty and Amendment of Taxation Laws Act, No. 9 of 2006 Second Small Business Tax Amnesty and Amendment of Taxation Laws Act, No. 10 of 2006 Revenue Laws Amendment Act, No. 20 of 2006 Revenue Laws Second Amendment Act, No. 21 of 2006 Taxation Laws Amendment Act, No. 8 of 2007 Taxation Laws Second Amendment Act, No. 9 of 2007 Government Notice No.

4 In Government Gazette 30370 of 12 October, 2007 Revenue Laws Amendment Act, No. 35 of 2007 Revenue Laws Second Amendment Act, No. 36 of 2007 Taxation Laws Amendment Act, No. 3 of 2008 Taxation Laws Second Amendment Act, No. 4 of 2008 Revenue Laws Amendment Act, No. 60 of 2008 Revenue Laws Second Amendment Act, No. 61 of 2008 Government Notice No. in Government Gazette 32416 of 24 July, 2009 Taxation Laws Amendment Act, No. 17 of 2009 Taxation Laws Second Amendment Act, No. 18 of 2009 Taxation Laws Amendment Act, No. 7 of 2010 Voluntary Disclosure Programme and Taxation Laws Second Amendment Act, No. 8 of 2010 Government Notice No. in Government Gazette 34046 of 1 March, 2011 Government Notice No. in Government Gazette 34046 of 1 March, 2011 Taxation Laws Amendment Act, No.

5 24 of 2011 Government Notice No. in Government Gazette 35102 of 2 March, 2012 Government Notice No. in Government Gazette 35481 of 6 July, 2012 Tax Administration Act, No. 28 of 2011 Government Notice No. 995 in Government Gazette 35932 of 7 December, 2012 Government Notice No. in Government Gazette 36002 of 14 December, 2012 Tax Administration Laws Amendment Act, No. 21 of 2012 Taxation Laws Amendment Act, No. 22 of 2012 Taxation Laws Amendment Act, No. 31 of 2013 Tax Administration Laws Amendment Act, No. 39 of 2013 Government Notice No. in Government Gazette 37554 of 17 April, 2014 Taxation Laws Amendment Act, No. 43 of 2014 Tax Administration Laws Amendment Act, No. 44 of 2014 Tax Administration Laws Amendment Act, No. 23 of 2015 Taxation Laws Amendment Act, No.

6 25 of 2015 Government Notice No. in Government Gazette 39100 of 14 August, 2015 proposed amendment by Taxation Laws Amendment Act, No. 27 of 1997 (provisions not yet proclaimed) Revenue Laws Amendment Act, No. 35 of 2007 (provisions not yet proclaimed) Revenue Laws Amendment Act, No. 60 of 2008 (provision not yet proclaimed) Taxation Laws Second Amendment Act, No. 18 of 2009 (provision not yet proclaimed) Tax Administration Act, No. 28 of 2011 (provisions not yet proclaimed) Taxation Laws Amendment Act, No. 43 of 2014 (provisions not yet proclaimed) Tax Administration Laws Amendment Act, No. 44 of 2014 (provisions not yet proclaimed) Taxation Laws Amendment Act, No. 25 of 2015 (provisions not yet commenced) EDITORIAL NOTE Section 1 (6) of Act No.

7 3 of 2008 amends various provisions specified in the second column of the table in Appendix III to that Act by the substitution for each monetary amount of the monetary amount in the third column alongside the relevant provision. In some instances no amendment has been annotated as the purported substitution is of the same monetary amount already specified in the relevant provision. Section 271 read with paragraph 107 of Schedule 1 of Act No. 28 of 2011 amends this Act by the substitution of the term "SARS official" for the term "officer" where used in the context of a person who is engaged by the Commissioner in carrying out the provisions of this Act. After incorporation of the amendments effected by Act No. 28 of 2011 there were no instances of this term used in that context and no additional amendments were made.

8 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. ARRANGEMENT OF SECTIONS 1. Definitions 2. 3. 4. 5. 6. 7. 8. 8A. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 18A. 18B. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 31A. 31B. 32. 33. 33A. 34. 35. 36. 37. Financial services Determination of "open market value " PART I ADMINISTRATION Administration of Act Exercise of powers and performance of duties.

9 PART II VALUE-ADDED TAX Imposition of VALUE-ADDED tax Certain supplies of goods or services deemed to be made or not made Sharia compliant financing arrangements Time of supply value of supply of goods or services Zero rating Exempt supplies Collection of tax on importation of goods, determination of value thereof and exemptions from tax Collection of VALUE-ADDED tax on imported services, determination of value thereof and exemptions from tax Accounting basis Calculation of tax payable Permissible deductions in respect of input tax Change in use adjustments Adjustments in consequence of acquisition of going concern wholly or partly for purposes other than making taxable supplies Temporary letting of residential fixed property Goods or services acquired before incorporation Tax invoices Credit and debit notes Irrecoverable debts PART III REGISTRATION Registration of persons making supplies in the course of enterprises Cancellation of registration Vendor to notify change of status Liabilities not affected by person ceasing to be vendor PART IV RETURNS, PAYMENTS AND ASSESSMENTS Tax period Returns and payments of tax Special returns.

10 Assessments .. PART V OBJECTIONS AND APPEALS Objections to certain decisions .. 38. 39. 40. 40A. 40B. 40C. 41. 41A. 41B. 42. 43. 44. 45. 45A. 45A. 46. 47. 48. 49. 50. 50A. 51. 52. 53. 54. 55. 56. 57. 57A. 57B. 57C. 57D. 58. 59. 60. 61. 62. 63. PART VI PAYMENT, RECOVERY AND REFUND OF TAX Manner in which tax shall be paid Penalty for failure to pay tax when due .. Liability of bargaining councils or political parties for tax and limitation of refunds Liability for tax in respect of certain past supplies or importations .. VAT class ruling and VAT ruling .. Refunds Interest on delayed refunds Calculation of interest payable under this Act .. PART VII REPRESENTATIVE VENDORS Persons acting in a representative capacity .. PART VIII SPECIAL PROVISIONS Separate enterprises, branches and divisions Separate persons carrying on same enterprise under certain circumstances deemed to be single person.