Category: Value-Added Tax Act No. 89 of 1991

“Donation” definition of section 1 of VAT Act

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“donation” means a payment whether in money or otherwise voluntarily made to any association not for gain for the carrying on or the carrying out of the purposes of that association and in respect of which no identifiable direct valuable benefit arises or may arise in the form of a supply of goods or services to the person making that payment or in the form of a supply of goods or services to any other person who is a connected person in relation to the person making the payment, but does not include any payment made by a public authority or a municipality;

[Definition of “donation” inserted by section 92 of Act 32 of 2004 and substituted by section 40 of Act 9 of 2006]

“Domestic goods and services” definition of section 1 of VAT Act

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“domestic goods and services” means goods and services provided in any enterprise supplying commercial accommodation, including-

(a)     cleaning and maintenance;

(b)     electricity, gas, air conditioning or heating;

(c)     a telephone, television set, radio or other similar article;

(d)     furniture and other fittings;

(e)     meals;

(f)     laundry;

[Paragraph (f) amended by section 128 of Act 25 of 2015 effective on 1 April 2016]

(g)     nursing services; or

[Paragraph (g) amended by section 128 of Act 25 of 2015 effective on 1 April 2016]

(h)     water;

[Paragraph (h) added by section 128 of Act 25 of 2015 effective on 1 April 2016]

[Definition of “domestic goods and services” substituted by section 65 of Act 19 of 2001 and section 148 of Act 60 of 2001 and amended by section 92 of Act 32 of 2004]

“Designated entity” definition of section 1 of VAT Act

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“designated entity” means a vendor-

(i)      to the extent that its supplies of goods and services of an activity carried on by that vendor are in terms of (b)(i) of the definition of ‘enterprise’ treated as supplies made in the course or furtherance of an enterprise;

(ii)    which is a major public entity, national government business enterprise or provincial government business enterprise listed in Schedule 2 or Part B or D of Schedule 3 of the Public Finance Management Act, 1999 (Act No. l of 1999), respectively;

[Paragraph (ii) amended by section 40 of Act 9 of 2006]

(iii)   which is a  party to a ‘Public Private Partnership Agreement’ as defined in Regulation 16 of the Treasury Regulations issued in terms of section 76 of the Public Finance Management  Act, 1999 (Act No. 1 of 1999), to the extent that that party supplies goods or services in terms of that Agreement to the ‘institution’ defined in that Regulation;

[Paragraph (iii) substituted by section 104 of Act 60 of 2008 and section 26 of Act 8 of 2010 effective on 2 November 2010]

(iv)    which is a welfare organisation;

[Paragraph (iv) amended by section 40 of Act 9 of 2006 and section 77 of Act 20 of 2006]

(v)     which is a municipal entity as defined in section 1 of the Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000); or

[Paragraph (v) added by section 40 of Act 9 of 2006 and amended by section 77 of Act 20 of 2006]

(vi)    which has powers similar to those of any water board listed in Part B of Schedule 3 of the Public Finance Management Act, 1999 (Act No. 1 of 1999), which would have complied with the definition of ‘local authority’ in section 1 prior to the deletion of that definition on 1 July 2006;

[Paragraph (vi) inserted by section 77 of Act 20 of 2006]

[Definition of “designated entity” inserted by section 164 of Act 45 of 2003]

“Customs controlled area enterprise” definition of section 1 of VAT Act

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“customs controlled area enterprise” has the meaning assigned thereto in section 21A(1) of the Customs and Excise Act;

[Definition of “customs controlled area enterprise” inserted by section 164 of Act 45 of 2003 and substituted by section 165 of Act 31 of 2013 and section 23 of Act 16 of 2016 effective on the date on which the Special Economic Zones Act, 2014 (Act No. 16 of 2014), came into operation, 9 February 2016]

“Customs controlled area” definition of section 1 of VAT Act

Posted on by admin_kmos

“customs controlled area” has the meaning assigned thereto in section 21A(1) of the Customs and Excise Act;

[Definition of “customs controlled area” inserted by section 164 of Act 45 of 2003 and substituted by section 165 of Act 31 of 2013 and section 23 of Act 16 of 2016 effective on the date on which the Special Economic Zones Act, 2014 (Act No. 16 of 2014), came into operation, 9 February 2016]

“Consideration” definition of section 1 of VAT Act

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“consideration”, in relation to the supply of goods or services to any person, includes any payment made or to be made (including any deposit on any returnable container and tax), whether in money or otherwise, or any act or forbearance, whether or not voluntary, in respect of, in response to, or for the inducement of, the supply of any goods or services, whether by that person or by any other person, but does not include any payment made by any person as a donation to any association not for gain: Provided that a deposit (other than a deposit on a returnable container), whether refundable or not, given in respect of a supply of goods or services shall not be considered as payment made for the supply unless and until the supplier applies the deposit as consideration for the supply or such deposit is forfeited;

[Definition of “consideration” substituted by section 92 of Act 32 of 2004 and amended by section 8 of Act 10 of 2005 with effect from 24 January 2005]