Category: PART IX – COMPLIANCE (VAT)

Section 61 (VAT) – Recovery of tax from recipient

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61. Recovery of tax from recipient

(1)     Where in respect of any supply made by a vendor, the vendor has, in consequence of any fraudulent action or any misrepresentation by the recipient of the supply, incorrectly applied a rate of zero per cent or treated such supply as being exempt from tax, the Commissioner may, notwithstanding anything to the contrary contained in this Act, raise an assessment upon the recipient for the amount of tax payable, together with any interest and penalty that has become payable in terms of Chapter 12, 15 or 16 of the Tax Administration Act, as the case may be, in respect of such amount.

[Subsection (1) substituted by section 28 of Act 37 of 1996 and substituted by section 271 of Act 28 of 2011 effective on 1 October 2012]

(2)     ……….

[Subsection (2) deleted by section 271 of Act 28 of 2011 effective on 1 October 2012]

(3)     This section shall not be construed as preventing the Commissioner from recovering the amounts of unpaid tax, penalty and interest from the vendor, but in the event of such amounts being recovered from the recipient the vendor shall be absolved from liability for the payment of the amounts due.


62. ……….

[Section 62 amended by section 103 of Act 30 of 1998 and section 105 of Act 53 of 1999 and repealed by section 271 of Act 28 of 2011 effective on 1 October 2012]

63. ……….

[Section 63 amended by section 29 of Act 37 of 1996 and repealed by section 271 of Act 28 of 2011 effective on 1 October 2012]

Section 58 (VAT) – Offences

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58  Offences

(1)     Any person who-

(a)     being an auctioneer or supplier of goods or services wilfully—

(i)      declares to any person to whom goods or services are supplied by such auctioneer or supplier that tax has been included in, or will be added to, the price or amount chargeable in respect of such supply, where in fact no tax is payable in terms of this Act;

(ii)     includes in, or adds to, the price or amount charged to the recipient in relation to such supply any tax, where in fact no tax is payable in terms of this Act; or

(iii)    includes in, or adds to, the price or amount charged to the recipient in relation to such supply any tax in excess of the tax properly leviable under this Act in respect of the value of such supply; or

(b)     wilfully fails to comply with the provisions of paragraph (i) of the proviso to section 20(1) or item (A) of the proviso to section 21(3),

is guilty of an offence and is liable, upon conviction, to a fine or to imprisonment for a period not exceeding two years.

(2)      Any person who-

(a)     wilfully or negligently fails to comply with the provisions of section 14, 28(1) or (2) or 29;

(b)     wilfully or negligently contravenes the provisions of section 65; or

(c)     being an agent or an auctioneer as contemplated in section 54, wilfully or negligently fails to comply with any of the requirements of section 54(3) or the proviso to section 54(5),

is guilty of an offence and is liable, upon conviction, to a fine or to imprisonment for a period not exceeding two years.

[Section 58 amended section 41 of Act 136 of 1991, by section 39 of Act 97 of 1993, by section 25 of Act 46 of 1996, by section 102 of Act 53 of 1999, by section 72 of Act 19 of 2001, by section 173 of Act 60 of 2001, by section 119 of Act 74 of 2002, by section 43 of Act 34 of 2004, by section 42 of Act 32 of 2005, by section 41 of Act 18 of 2009, by section 142(1) of Act 24 of 2011 and by section 271 read with paragraph 142 of Schedule 1 of Act 28 of 2011 and substituted by section 21 of Act 24 of 2020]

59. ……….

[Section 59 amended by section 40 of Act 97 of 1993 and section 103 of Act 53 of 1999 and repealed by section 271 of Act 28 of 2011 effective on 1 October 2012]

60. ……….

 [Section 60 amended by section 50 of Act 27 of 1997 and repealed by section 271 of Act 28 of 2011 effective on 1 October 2012]

Section 55 (VAT) – Records

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55. Records

(1)     In addition to the records required under Part A of Chapter 4 of the Tax Administration Act, every vendor must, in particular, keep the following records and documents:

[Words preceding paragraph (a) substituted by section 271 of Act 271 of Act 28 of 2011 effective on 1 October 2012]

(a)     a record of all goods and services supplied by or to the vendor showing the goods and services, the rate of tax applicable to the supply and the suppliers or their agents, in sufficient detail to enable the goods and services, the rate of tax, the suppliers or the agents to be readily identified by the Commissioner, and all invoices, tax invoices, credit notes, debit notes, bank statements, deposit slips, stock lists and paid cheques relating thereto: Provided that a vendor’s records do not have to show the rate of tax where the vendor has been authorised by the Commissioner to calculate the tax payable by him in accordance with a method prescribed by regulation, as contemplated in section 16(1);

[Paragraph (a) substituted by section 38 of Act 97 of 1993 and section 102 of Act 30 of 1998]


(aA)  a record of all importations of goods and documents relating thereto as contemplated in section 16(2)(d);

[Paragraph (aA) inserted by section 35 of Act 136 of 1992]


(aB)  any documentary proof required to be obtained and retained in accordance with section 16(2)(f) or (g);

[Paragraph (aB) inserted by section 37 of Act 36 of 2007 and substituted by section 29 of Act 16 of 2016 effective on 19 January 2017]


(b)     the charts and codes of account, the accounting instruction manuals and the system and programme documentation which describe the accounting system used in each tax period in the supply of goods and services;


(c)     any list required to be prepared in accordance with section 15 (9); and


(d)     any documentary proof required to be obtained and retained in accordance with section 11(3).

[Subsection (1) amended by section 38 of Act 97 of 1993]

(2)     ……….

[Subsection (2) substituted by section 38 of Act 97 of 1993 and deleted by section 271 of Act 28 of 2011 effective on 1 October 2012]

(3)     ……….

[Subsection (3) substituted by section 38 of Act 97 of 1993, amended by section 17 of Act 10 of 2006 and deleted by section 271 of Act 28 of 2011 effective on 1 October 2012]

(4)     ……….

[Subsection (4) substituted by section 38 of Act 97 of 1993, amended by section 18 of Act 9 of 2007 and deleted by section 271 of Act 28 of 2011 effective on 1 October 2012]


56. ……….

[Section 56 repealed by section 23 of Act 46 of 1996]

57. ………..

 [Section 57 substituted by section 24 of Act 46 of 1996, amended by section 47 of Act 27 of 1997, section 172 of Act 60 of 2001 and section 187 of Act 45 of 2003 and repealed by section 271 of Act 28 of 2011 effective on 1 October 2012]