Author: admin_kmos

Section 67 (VAT) – Contract price or consideration may be varied according to rate of value-added tax

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67. Contract price or consideration may be varied according to rate of value-added tax

 

(1)     Whenever the value-added tax is imposed for the first time in terms of this Act or the rate of tax applicable under section 7(1) is increased in respect of any supply of goods or services in relation to which any agreement was entered into by the acceptance of an offer made before the tax was imposed for the first time in terms of this Act or the rate of tax applicable under section 7(1) was increased, as the case may be, the vendor may, unless agreed to the contrary in any agreement in writing and notwithstanding anything to the contrary contained in any law, recover from the recipient, as an addition to the amounts payable by the recipient to the vendor, a sum equal to any amount payable by the vendor by way of the said tax or increase, as the case may be, and any amount so recoverable by the vendor shall, whether it is recovered or not, be accounted for by the vendor under the provisions of this Act as part of the consideration in respect of the said supply.

[Subsection (1) substituted by section 38 of Act 136 of 1992, section 30 of Act 37 of 1996 and section 104 of Act 43 of 2014 effective on 1 April 2015]

 

(2)     Whenever the value-added tax is withdrawn or the rate of tax applicable under section 7(1) is decreased in respect of any supply of goods or services in relation to which any agreement was entered into by the acceptance of an offer made before the tax was withdrawn or the rate of tax applicable under section 7(1) was decreased, as the case may be, the vendor shall, unless agreed to the contrary in any agreement in writing and notwithstanding anything to the contrary contained in any law, reduce the amount payable to the vendor by the recipient by way of any consideration in which the amount of such tax was included, by a sum equal to the amount of the tax withdrawn or the amount by which the rate of tax applicable under section 7(1) was decreased, as the case may be.

[Subsection (2) substituted by section 30 of Act 37 of 1996 and section 104 of Act 43 of 2014 effective on 1 April 2015]

 

(3)     Whenever the value-added tax is imposed for the first time in terms of this Act or withdrawn or the rate of tax applicable under section 7(1) is increased or decreased, as the case may be, in respect of any supply of goods or services subject to any fee, charge or other amount (whether it is a fixed, maximum or minimum fee, charge or other amount) prescribed by, or determined pursuant to, any Act or by any regulation or measure having the force of law, that fee, charge or other amount may be increased or shall be decreased, as the case may be, by the amount of tax or additional tax charged or chargeable or the amount of tax no longer charged or chargeable, as the case may be: Provided that this subsection shall not apply to any fee, charge or other amount if such fee, charge or other amount has been altered in any Act, regulation or  measure prescribing or determining such fee, charge or other amount to take account of any imposition of tax for the first time in terms of this Act or withdrawal of such tax or increase or decrease in the rate of tax applicable under section 7(1): Provided further that this subsection shall not be construed so as to permit any further increase or require a further decrease, as the case may be, in a fee, charge or other amount referred to in this subsection, where such fee, charge or other amount is calculated as a percentage or fraction of another amount which represents the consideration in money for a taxable supply of goods or services, other than a taxable supply charged with tax at the rate or zero per cent or a supply which is an exempt supply.

[Subsection (3) added by section 43 of Act 136 of 1991 and amended by section 38 of Act 136 of 1992 and section 104 of Act 43 of 2014 effective on 1 April 2015]

Section 66 (VAT) – Rounding-off of the tax

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66. Rounding-off of tax

In determining an amount of tax under this Act—

(a) where the tax fraction is expressed as—

(i) a proportion, that proportion may not be rounded off to fewer than five decimal places namely0,13043; or

(ii) a percentage, that percentage may not be rounded off to fewer than three decimal places,namely 13,043; and

(b) fractions of—

(i) less than half a cent, must be rounded down to the last cent; or

(ii) half a cent or more, must be rounded up to the next cent.

[Section 66 substituted by section 175 of Act 60 of 2001 and by section 13(1) of Act 21 of 2018 effective on 1 April 2018]

Section 65 (VAT) – Prices advertised or quoted to include tax

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65. Prices advertised or quoted to include tax

 

Any price advertised or quoted by any vendor in respect of any taxable supply of goods or services shall include tax and the vendor shall in his advertisement or quotation state that the price includes tax, unless the total amount of the tax chargeable under section 7(1)(a), the price excluding tax and the price inclusive of tax for the supply are advertised or quoted by the vendor: Provided that-

 

(i)      where the price inclusive of tax and the price excluding tax for a supply are advertised or quoted, both prices shall be advertised or quoted with equal prominence and impact;

(ii)     price tickets on goods need not state that the prices include tax if this is stated by way of a notice prominently displayed at all entrances to the premises in which the enterprise is carried on and at all points in such premises where payments are effected;

(iii)    the Commissioner may in the case of any vendor or class of vendors approve any other method of displaying prices of goods or services by such vendor or class of vendors or, where the rate of tax is increased or reduced, the date on which the increased or reduced rate of tax takes effect;

[Paragraph (iii) substituted by section 103 of Act 43 of 2014 effective on 1 April 2015]

(iv)    a vendor may not state or imply that any form of trade, cash or any other form of discount or refund is in lieu of the tax chargeable in terms of section 7(1)(a).

[Paragraph (iv) added by section 174 of Act 60 of 2001]

[Section 65 amended by section 37 of Act 136 of 1992]

Section 64 (VAT) – Prices deemed to include tax

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64. Prices deemed to include tax

 

(1)     Any price charged by any vendor in respect of any taxable supply of goods or services shall for the purposes of this Act be deemed to include any tax payable in terms of section 7(1)(a) in respect of such supply; whether or not the vendor has included tax in such price.

 

(2)     The amount of any deposit payable to or refundable by a vendor in respect of a returnable container shall be deemed to include tax.

[Section 64 substituted by section 36 of Act 136 of 1992]

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]

Section 54A (VAT) – Advance Tax Rulings

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54A.    Advance Tax Rulings

 

(1)     The provisions relating to advance tax rulings contained in Part IA of Chapter III of the Income Tax Act, 1962, apply mutatis mutandis for purposes of this Act.

 

(2)     Any procedures and guidelines issued by the Commissioner in terms of section 76S of the Income Tax Act, 1962, for implementation and operation of the advance tax ruling system apply mutatis mutandis for purposes of this Act.

[Section 54A inserted by section 42 of Act 34 of 2004, effective on 1 October 2006]