Category: Section 1 (VAT) – Definitions

“Fixed property” definition of section 1 of VAT Act

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“fixed property” means land (together with improvements affixed thereto), any unit as defined in section 1 of the Sectional Titles Act, 1986 (Act No. 95 of 1986), any share in a share block company which confers a right to or an interest in the use of immovable property, and, in relation to a property time-sharing scheme, any time-sharing interest as defined in section 1 of the Property Time-sharing Control Act, 1983 (Act No. 75 of 1983); and any real right in any such land, unit, share or time-sharing interest;

[Definition of “fixed property” substituted by GN 2695 of 1991 and section 12 of Act 136 of 1992]

“Foreign donor funded project” definition of section 1 of VAT Act

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“foreign donor funded project” means a project established in terms of an official development assistance agreement to supply goods or services to beneficiaries, to which the government of the Republic is a party, and which-

(a)     is binding on the Republic in terms of section 231(3) of the Constitution of the Republic of South Africa, 1996;

(b)     provides that the international donor funding must not be subject to tax; and

(c)     has been approved by the Minister of Finance as a foreign donor funded project for the purposes of the definition;

[Definition of “foreign donor funded project” inserted by section 101(c) of Act 31 of 2005 and substituted by section 77(c) of Act 20 of 2006 and by section 66(1)(b) of Act 34 of 2019 effective on 1 April, 2020]

“Foreign-going aircraft” definition of section 1 of VAT Act

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“foreign-going aircraft” means any –

 

(a)     aircraft engaged in the transportation for reward of passengers or goods wholly or mainly on flights between airports in the Republic and airports in export countries or between airports in export countries; or

(b)     foreign military aircraft;

[Definition of “foreign-going aircraft” substituted by section 9 of Act 20 of 1994 and section 119 of Act 7 of 2010 effective on 2 November 2010]

“Foreign-going ship” definition of section 1 of VAT Act

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“foreign-going ship” means-

(a)     any ship or other vessel engaged in the transportation for reward of passengers or goods wholly or mainly on voyages between ports in the Republic and ports in export countries or between ports in export countries;

[Paragraph (a) amended by section 119 of Act 7 of 2010 effective on 2 November 2010]

(b)     any ship or other vessel registered in an export country where such ship or vessel is utilized for the purposes of a commercial, fishing or other concern conducted outside the Republic by a person who is not a vendor and is not a resident of the Republic; or

[Paragraph (b) amended by section 119 of Act 7 of 2010 effective on 2 November 2010]

(c)     any foreign naval ship;

[Paragraph (c) inserted by section 119 of Act 7 of 2010 effective on 2 November 2010]

[Definition of “foreign-going ship” substituted by section 9 of Act 20 of 1994]

“Goods” definition of section 1 of VAT Act

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“goods” means corporeal movable things, fixed property, any real right in any such thing or fixed property, and electricity, but excluding-

[Words preceding paragraph (a) substituted by section 104 of Act 60 of 2008]

(a)     money;

(b)     any right under a mortgage bond or pledge of any such thing or fixed property; and

(c)     any stamp, form or card which has a money value and has been sold or issued by the State for the payment of any tax or duty levied under any Act of Parliament, except when subsequent to its original sale or issue it is disposed of or imported as a collector’s piece or investment article;

“Grant” definition of section 1 of VAT Act

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“grant” means any appropriation, grant in aid, subsidy or contribution transferred, granted or paid to a vendor by a public authority, municipality or constitutional institution listed in Schedule 1 to the Public Finance Management Act, 1999 (Act No. 1 of 1999), but does not include-

 

(a)     a payment made for the supply of any goods or services to that public authority or municipality, including all goods or services supplied to a public authority, municipality or constitutional institution listed in Schedule 1 to the Public Finance Management Act, 1999 (Act No. 1 of 1999) in accordance with a procurement process prescribed-

(i)    in terms of the Regulations issued under section 76(4)(c) of the Public Finance Management Act, 1999 (Act No. 1 of 1999); or

(ii)   in terms of Chapter 11 of the Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003), or any other similar process; or

(b)     a payment contemplated in section 8(23);

[Paragraph (b) substituted by section 128 of Act 25 of 2015 and section 77 of Act 17 of 2017 effective on 1 April 2017]

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

“Implementing agency” definition of section 1 of VAT Act

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“implementing agency” means-

(a)     the government of the Republic in the national, provincial or local sphere; or

(b)     any institution or body established and appointed by a foreign government, as contemplated in section 10(1)(bA)(ii) of the Income Tax Act; or

(c)     any person who has entered into a contract directly with the party contemplated in paragraph (a) or (b),

to implement, operate, administer or manage a foreign donor funded project;

[Definition of “implementing agency” inserted by section 66(1)(c) of Act 34 of 2019 effective on 1 April, 2020]

“Inbound insurance policy” definition of section 1 of VAT Act

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“inbound insurance policy” means a travel policy which provides insurance cover in respect of a passenger transported from an export country into the Republic or between two places in the Republic as part of an international journey;

[Definition of “inbound insurance policy” inserted by section 77(1)(b) of Act 17 of 2017 and substituted by section 89(a) of Act 23 of 2018]