14. Collection of value-added tax on imported services, determination of value thereof and exemptions from tax

(1)     Where tax is payable in terms of section 7(1)(c) in respect of the supply of imported services the recipient shall within 30 days of the date referred to in subsection (2)-

(a)       obtain, complete and retain the form prescribed by the Commissioner; and

[Paragraph (a) substituted by section 271 read with paragraph 113 of Schedule 1 of Act 28 of 2011 and by section 19 of Act 24 of 2020]

(b)     calculate the tax payable on the value of the imported services at the rate of tax in force on the date of supply of the imported services and pay such tax to the Commissioner:

Provided that where the recipient is a vendor, that vendor must calculate the tax payable on the value of the imported services at the rate of tax in force on the date of supply of the imported services and must furnish the Commissioner with a return reflecting the information required for the purposes of the calculation of the tax in terms of section 14 and pay such tax to the Commissioner in accordance with section 28.

[Subsection (1) substituted by section 28 of Act 8 of 2010 effective on 1 February 2011]

(2)     For the purposes of this Act, a supply of imported services shall be deemed to take place at the time an invoice is issued by the supplier or recipient in respect of that supply or the time any payment is made by the recipient in respect of that supply, whichever time is the earlier.

(3)     For the purposes of this Act, the value to be placed on the supply of imported services shall, save as otherwise provided in this section, be the value of the consideration for the supply, as determined in terms of section 10(3) or the open market value of the supply, whichever is the greater.

(4)     Where a person carries on activities outside the Republic which do not form part of the activities of any enterprise carried on by him and in the course of such first-mentioned activities services are rendered for the purposes of such enterprise which, if rendered by anybody other than the said person, would be imported services, such services shall for the purposes of section 7(1)(c) be deemed to be imported services supplied and received by that person in respect of such enterprise.

(5)     The tax chargeable in terms of section 7(1)(c) shall not be payable in respect of-

(a)     a supply which is chargeable with tax in terms of section 7(1)(a) at the rate provided in section 7;

(b)     a supply which, if made in the Republic, would be charged with tax at the rate of zero per cent applicable in terms of section 11 or would be exempt from tax in terms of section 12;

(c)     a supply of an educational service by an educational institution established in an export country which is regulated by an educational authority in that export country; or

[Paragraph (c) added by section 171 of Act 45 of 2003]

(d)     a supply by a person of services as contemplated in terms of proviso (iii)(aa) to the definition of ‘enterprise’ in section 1.

[Paragraph (d) added by section 101 of Act 32 of 2004]

(e)     a supply of services of which the value in respect of that supply does not exceed R100 per invoice.

[Paragraph (e) added by section 136 of Act 24 of 2011 with effect from 10 January 2012]