‘registered micro business’ has the meaning assigned thereto in the Sixth Schedule to the Income Tax Act.
Category: Value-Added Tax Act No. 89 of 1991
“Turnover tax” definition of section 78A of VAT Act
‘turnover tax’ means the turnover tax payable by a registered micro business in terms of section 48A of the Income Tax Act; and
“Taxable turnover” definition of section 78A of VAT Act
‘taxable turnover’ has the meaning assigned thereto in the Sixth Schedule to the Income Tax Act;
Subsections 3 and 4 of section 2 of VAT Act
(3) Notwithstanding subsection (2), the terms “debt security”, “equity security” and “participatory security” do not include any of the following:
(a) A life insurance policy or any other policy of insurance;
[Paragraph (a) substituted by section 19(1)(i) of Act 37 of 1996 and by section 49(c) of Act 20 of 2021]
(b) any ownership or interest in land, other than an interest as mortgagee;
(c) a share in the share capital of a share block company;
[Paragraph (c) amended by section 13 of Act 136 of 1992]
(d) any interest of a member of a close corporation which confers on the member a time-sharing interest as defined in section 1 of the Property Time-sharing Control Act, 1983 (Act No. 75 of 1983), on the terms and conditions contained in the association agreement of such close corporation;
(e) an interest in a superannuation scheme.
(4) Notwithstanding anything in this section, the term “financial services” does not include-
(a) the cession, assignment, transfer or other supply of any right to receive payment in relation to any taxable supply where, as a result of any such cession, assignment, transfer or supply, output tax in relation to that taxable supply would not be or become attributable to any tax period for the purposes of section 16 (3); or
[Paragraph (a) substituted by section 24 of Act 27 of 1997]
(b) ………..
[Paragraph (b) deleted by section 105 of Act 60 of 2008 effective on 21 Oct 2008]
(c) the transfer of any interest in or right to be paid money that is, or is to be, owing by a share block company under its loan obligation, as defined in section 1 of the Share Blocks Control Act, to any person who is or will be a shareholder of such share block company.
[Paragraph (c) substituted by section 10 of Act 20 of 1994 and effective on 9 July 1993]
[Subsection (4) deleted by section 22 of Act 136 of 1991 and inserted by section 13 of Act 136 of 1992]
“Superannuation scheme” definition of section 2 of VAT Act
(vii) “superannuation scheme” means a scheme whereby provision is made for the payment or granting of benefits by a benefit fund, pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund as defined in section 1 of the Income Tax Act.
[Definition of “superannuation scheme” substituted by section 10 of Act 20 of 1994 and section 130 of Act 24 of 2011 with effect from 10 January 2012]
“Participatory security” definition of section 2 of VAT Act
(vi) “participatory security” means a participatory interest as defined in section 1 of the Collective Investment Schemes Control Act, 2002 (Act No. 45 of 2002), but does not include an equity security, a debt security, money or a cheque;
[Definition of “participatory security” substituted by section 115 of Act 74 of 2002 and section 78 of Act 20 of 2006]
“Merchant’s discount” definition of section 2 of VAT Act
(vA) “merchant’s discount” means a charge made to merchants for accepting a credit or debit card as payment for the supply of goods or services, or a similar charge made by a buying organisation;
[Definition of “merchant’s discount” inserted by section 87 of Act 30 of 1998]
“Long-term insurance policy” definition of section 2 of VAT Act
(v) “life insurance policy” means any policy of insurance issued in the ordinary course of carrying on a life insurance business as defined in section 1(1) of the Insurance Act, 2017 (Act 18 of 2017);
[Definition of “life insurance policy” substituted by section 22(a) of Act 136 of 1991, by the definition of “long-term insurance policy” in section 19(1)(h) of Act 37 of 1996, by section 82(b) of Act 53 of 1999 and by the definition of “life insurance policy” in section 49(b) of Act 20 of 2021]
“Equity security” definition of section 2 of VAT Act
(iv) “equity security” means any interest in or right to a share in the capital of a juristic person or the interest in a close corporation of a member thereof;
“Derivative” definition of section 2 of VAT Act
(iiiA) “derivative” means a derivative as defined in and within the scope of International Financial Reporting Standard 9 issued by the International Accounting Standards Board;
[Definition of “derivative” inserted by section 93(c) of Act 32 of 2004 and substituted by section 130(1)(a) of Act 24 of 2011 and by section 47(1) of Act 17 of 2023 with effect from 1 January, 2024]