40E.  Liability for tax and limitation of refunds in respect of supplies by school

 

(1)     This section applies in respect of the supply of services by a school contemplated in section 12(h)(ii) before 1 January 2026.

 

(2)     Where the Commissioner issued any assessment relating to tax periods ending before 1 January 2026 for an amount of tax or penalty in respect of any supply of services, as contemplated in subsection (1), in respect of the application of the provisions, as contemplated in section 12(h)(ii), in respect of that supply, the Commissioner must, on written application by the vendor, amend that assessment to the extent that the amount of tax, penalty or interest that arose as a result of that assessment, has not yet been paid on that date: Provided that the assessment does not result in a refund to the vendor.

 

(3)      The Commissioner may not make any assessment for tax periods ending before 1 January 2026 in respect of the supply of services contemplated in subsection (1).

 

(4)     If the vendor has charged tax at the rate referred to in section 7(1) in respect of the supply contemplated in subsection (1), the Commissioner may not refund any such tax, penalty or interest that arose as a result of the late payment to such tax, paid by the vendor to the Commissioner.

[Section 40E inserted by section 45(1) of Act 5 of 2026 effective on 1 January, 2026]