9. Time of supply
(1) For the purposes of this Act a supply of goods or services shall, except as otherwise provided in this Act, be deemed to take place at the time an invoice is issued by the supplier or the recipient in respect of that supply or the time any payment of consideration is received by the supplier in respect of that supply, whichever time is earlier.
(2) A supply of goods or services shall be deemed to take place-
(a) where the supplier and the recipient are connected persons-
(i) in the case of a supply of goods which are to be removed, at the time of the removal; and
(ii) in the case of a supply of goods which are not to be removed, at the time when they are made available to the recipient; and
(iii) in the case of a supply of services, at the time the services are performed:
Provided that this paragraph shall not apply in any case where an invoice is issued in respect of that supply or any payment is made in respect of that supply on or before-
(aa) the day on which the return is furnished for the tax period during which that supply would, but for this proviso, have been made; or
(bb) the last day prescribed by this Act for furnishing the return for the tax period during which that supply would, but for this proviso, have been made;
: Provided further that this paragraph shall not apply where the whole of the consideration or part thereof for such supply of goods or services cannot be determined at the time the goods are removed or made available or at the time the services are performed, and the recipient would have been entitled under section 16(3) at that time to make a deduction of the full amount of tax in respect of that supply, in which case the provisions of subsection (1) shall apply;
[Further proviso to paragraph (a) added by section 130 of Act 25 of 2015 effective on 1 April 2016]
(b) where that supply is a supply to which section 8(3) refers, on the day after the last day of the period during which the recipient may exercise the right under section 121 of the National Credit Act, 2005 (Act No. 34 of 2005), to rescind the agreement;
[Paragraph (b) substituted by section 172 of Act 34 of 2005 and section 28 of Act 36 of 2007]
(c) where that supply is a supply to which section 8(4) refers, at the time at which the goods are delivered to the recipient: Provided that in any case in which a supply of services is deemed to take place under section 8(4)(b), that supply of services shall be deemed to take place at the time that the agreement of sale is cancelled or terminates;
(d) where the supply is for a consideration in money received by the supplier by means of any machine, meter or other device operated by a coin, paper currency, token or by any other means-
(i) in the case of such supplier, at the time any such coin, paper currency or token is taken from that machine, meter or other device by or on behalf of the supplier or an amount is received by the supplier by other means; and
(ii) in the case of the recipient of such supply at the time the coin, paper currency or token is inserted into that machine, meter or other device by or on behalf of the recipient or when payment is tendered through other means;
[Paragraph (d) substituted by section 27 of Act 8 of 2010 effective on 2 November 2010]
(e) where the provisions of section 8(9) are applicable in respect of the consignment or delivery of goods at an address outside the Republic or the provision of any service by a vendor to his branch or main branch at the time the goods are consigned or delivered to such branch or the service is performed, as the case may be.
[Paragraph (e) substituted by section 25 of Act 136 of 1991 and section 167 of Act 45 of 2003]
(3) Notwithstanding anything in subsection (1) or (2) of this section-
(a) where goods are supplied under any rental agreement or where services are supplied under any agreement or law which provides for periodic payments, they shall be deemed to be successively supplied for successive parts of the period of the agreement or as determined by such law, and each of the successive supplies shall be deemed to take place when a payment becomes due or is received, whichever is the earlier;
(b) where and to the extent that-
(i) goods are supplied progressively or periodically under any agreement or law which provides for the consideration for that supply to be paid in instalments or periodically and in relation to the progressive or periodic supply of those goods; or
(ii) goods or services supplied directly in the construction, repair, improvement, erection, manufacture, assembly or alteration of goods are supplied under any agreement or law which provides for the consideration for that supply to become due and payable in instalments or periodically in relation to the progressive nature of the work,
those goods or services shall be deemed to be successively supplied, and each such successive supply shall be deemed to take place whenever any payment in respect of any supply becomes due, is received, or any invoice relating only to that payment is issued, whichever is the earliest;
(c) where goods are supplied under an instalment credit agreement, that supply shall, subject to the provisions of subsection (2)(b), be deemed to take place at the time the goods are delivered or the time any payment of consideration is received by the supplier in respect of that supply, whichever time is earlier;
[Paragraph (c) substituted by section 25 of Act 136 of 1991]
(d) where goods consisting of fixed property or any real right therein are supplied under a sale, that supply shall be deemed to take place-
(i) ……….
[Subparagraph (i) deleted by section 25 of Act 97 of 1993]
(ii) where registration of transfer of the goods is effected in a deeds registry, on the date of such registration; or
(iii) on the date on which any payment is made in respect of the consideration for such supply,
whichever date is earlier;
[Paragraph (d) amended by section 25 of Act 97 of 1993]
(e) where any supply of a service is deemed to be made as contemplated in section 8(13), the service shall be deemed to be supplied to the extent that payment of any amount of the bet is made, and each such supply shall be deemed to take place whenever any payment in respect of such supply is received by the supplier;
(f) where any supply of a service is deemed to be made as contemplated in section 8(13A), the supply shall be deemed to take place whenever any amount is paid out as a prize or winnings by the supplier of the services contemplated in section 8(13).
[Paragraph (f) added by section 21 of Act 46 of 1996]
(4) Subject to the provisions of subsections (2)(a) and (6)-
(a) where goods are supplied under an agreement, other than an instalment credit agreement or rental agreement, and the goods or part of them are appropriated under that agreement by the recipient in circumstances where the whole of the consideration is not determined at the time they are appropriated, that supply shall be deemed to take place when and to the extent that any payment in terms of the agreement is due or is received or an invoice relating to the supply is issued by the supplier or the recipient, whichever is the earliest; and
(b) where services are supplied under an agreement and the consideration for such services supplied is not determined at the time that such services are rendered or performed, that supply shall be deemed to take place when and to the extent that any payment in terms of the agreement is due or is received or an invoice relating to the supply is issued by the supplier or the recipient, whichever is the earliest.
[Subsection (4) substituted by section 167 of Act 31 of 2013 effective on 1 April 2014]
(5) Where any goods or any right capable of assignment, cession or surrender is deemed to be supplied by a vendor in the course of his enterprise as contemplated in section 8(2) the time of supply shall be deemed to be the time contemplated in that section.
(6) Where any supply of goods or services is deemed to be made as contemplated in section 18(1) the time of supply shall be deemed to be the time that the goods or services are applied as contemplated in the said subsection.
(7) The supply of goods or services which is deemed to be made by any vendor as contemplated in section 18(3) shall be deemed to take place at the end of the month in respect of which the cash equivalent of the benefit or advantage concerned, as determined under the Seventh Schedule to the Income Tax Act, or a portion of such cash equivalent, is in terms of the Fourth Schedule to that Act required to be included in the remuneration of the employee or office holder to whom the benefit or advantage is granted or, where such cash equivalent is not required to be included in the remuneration of the employee or office holder in terms of the said Fourth Schedule, on the last day of the year of assessment in terms of the said Act, as applicable to that employee or office holder, during which the benefit or advantage was granted to him.
(8) Where a supply of goods is deemed by section 8(10) to be made by a debtor, the time of that supply shall be deemed to be the day on which the goods are repossessed or surrendered or, where the debtor may under any law be reinstated in the debtor’s rights and obligations under such agreement, the day after the last day of any period during which the debtor may under such law be so reinstated.
[Subsection (8) substituted by section 167 of Act 31 of 2013 effective on 1 April 2014]
(9) Where any supply of goods is deemed to be made as contemplated in section 8(20), that supply shall be deemed to take place at the time the tax payable on importation of the goods is paid by the agent.
[Subsection (9) added by section 26 of Act 27 of 1997]
(10) Where any supply of a game viewing vehicle or a hearse is deemed to be made as contemplated in section 8(14)(b) or 8(14A) the time of supply shall be deemed to be the time that the game viewing vehicle or hearse is supplied as contemplated in those sections.
[Subsection (10) added by section 96 of Act 32 of 2004]
(11) Where any supply of goods is deemed to be made as contemplated in section 8(24), that supply shall be deemed to take place on the last day of the applicable period contemplated in section 8(24).
[Subsection (11) added by section 103 of Act 31 of 2005]
(12) Where any supply of goods is deemed to be made as contemplated in section 8(29), that supply shall be deemed to take place at the time the leasehold improvements are contemplated.
[Subsection (12) added by section 79(1) of Act 17 of 2017 effective on 1 April 2018]
(13) Where any supply of goods or services is deemed to be made as contemplated in section 18D(2) the time of supply shall be deemed to be the date within the tax period in which the agreement for the letting and hiring of the accommodation in a dwelling comes into effect or in which the dwelling is occupied, whichever comes first.
[Subsection (13) inserted by section 50(1) of Act 20 of 2021 and substituted by section 28(1) of Act 20 of 2022 deemed effective on 1 April, 2022]