‘taxable turnover’ has the meaning assigned thereto in the Sixth Schedule to the Income Tax Act;
Category: Definitions – VAT
“Tax fraction” definition of section 1 of VAT Act
“tax fraction” means the fraction calculated in accordance with the formula:
r
______
100 + r
in which formula “r” is the rate of tax applicable under section 7 (1);
“Tax invoice” definition of section 1 of VAT Act
“tax invoice” means a document provided as required by section 20;
“Temporarily applied” definition of section 18D of VAT Act
(b) “temporarily applied” means the application of fixed property or a portion of a fixed property in supplying accommodation in a dwelling under an agreement or more than one agreement for letting and hiring thereof which agreement or agreements relate to a combined total period not exceeding 12 months: Provided that “temporarily applied” does not include the application of fixed property in supplying accommodation in a dwelling under an agreement for the letting and hiring thereof where any such agreement is for a fixed period exceeding 12 months, in which case this section will not apply, but the provisions of section 18(1) shall apply.
(2) Notwithstanding the provisions of section 18(1), where goods being supplied consist of fixed property consisting of any dwelling and such fixed property—
(a) is developed by a vendor who is a developer wholly for the purpose of making taxable supplies or is held or applied for that purpose by that vendor; and
(b) is subsequently temporarily applied by that vendor in accordance with section 12(c),
such fixed property shall be deemed to have been supplied by that vendor by way of a taxable supply for the consideration contemplated in section 10(29) and shall take place in accordance with section 9(13).
(3) Where a vendor who is a developer subsequently supplies fixed property contemplated in subsection (2)(b) by way of a sale within the period that the fixed property is temporarily applied, such supply shall be a taxable supply in the course or furtherance of the vendor’s enterprise and shall take place in accordance with section 9(3)(d).
(4) Where fixed property contemplated in subsection (3) is supplied by that vendor, the supply shall be deemed to be made for a consideration as contemplated in section 10(2).
(5) Where fixed property-
(a) contemplated in subsection (3) is supplied by that vendor within the “temporarily applied” period; or
[Paragraph (a) substituted by section 50(1)(a) of Act 17 of 2023 effective on 1 April, 2024]
(b) is temporarily applied as contemplated in subsection (2)(b) and is no longer applied in supplying accommodation in a dwelling immediately after the expiry of the “temporarily applied” period;
[Paragraph (b) substituted by section 50(1)(b) of Act 17 of 2023 effective on 1 April, 2024]
(c) . . . . . .
[Paragraph (c) substituted by section 30(1) of Act 20 of 2022 and deleted by section 50(1)(c) of Act 17 of 2023 effective on 1 April, 2024]
the Commissioner shall allow such vendor a deduction in terms of section 16(3)(o), and the deduction so made shall be deemed for the purpose of that section to be input tax.
(6) The fixed property contemplated in subsection (2)(b) shall be deemed to have been supplied by the developer by way of a taxable supply under section 18(1) for a consideration as contemplated in section 10(7) in the course or furtherance of that vendor’s enterprise at the earlier of-
(a) the time that the temporary letting period of 12 months has been exceeded; or
(b) the time that the vendor applies that fixed property permanently for a purpose other than that of making taxable supplies:
Provided that this provision shall not apply if, during the period that the property is “temporarily applied”, a written agreement for the taxable supply of the property has been concluded and the transfer of that property only occurs after the expiry of the said period. In such a case, the sale of the property concerned will be a taxable supply at the time contemplated in section 9(3)(d).
[Subsection (6) added by section 50(1)(d) of Act 17 of 2023 effective on 1 April, 2024]
[Section 18D inserted by section 54(1) of Act 20 of 2021 effective on 1 April, 2022]
“This Act” definition of section 1 of VAT Act
“this Act” includes the regulations;
“Transfer Duty Act” definition of section 1 of VAT Act
“Transfer Duty Act” means the Transfer Duty Act, 1949 (Act No. 40 of 1949);
[Definition of “Transfer Duty Act” inserted by section 9 of Act 20 of 1994]
“Transitional metropolitan council” definition of section 1 of VAT Act
“transitional metropolitan council” means a transitional metropolitan council as defined in section 1 of the Local Government Transition Act, 1993 (Act No. 209 of 1993);
[Definition of “transitional metropolitan council” inserted by section 9 of Act 20 of 1994]
“Trust fund” definition of section 1 of VAT Act
“trust fund” means any fund consisting of cash or other assets the administration and control of which is entrusted to any person acting in a fiduciary capacity by any person, whether under a deed of trust or by agreement, or by a deceased person under a will made by that person;
[Definition of “trust fund” substituted by section 21 of Act 136 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
“VAT registration number” definition of section 1 of VAT Act
“VAT registration number”, in relation to any vendor, means the number allocated to that vendor by the Commissioner in terms of section 24 of the Tax Administration Act;
[Definition of “VAT registration number” inserted by section 43 of Act 16 of 2004 and substituted by section 271 of Act 28 of 2011 effective on 1 October 2012]