“input tax”, in relation to a vendor, means-

(a)     tax charged under section 7 and payable in terms of that section by-

(i)     a supplier on the supply of goods or services made by that supplier to the vendor; or

(ii)   the vendor on the importation of goods by that vendor; or

[Subparagraph (ii) substituted by section 19 of Act 44 of 2014 effective on 20 January 2015]

(iii)  the vendor under the provisions of section 7(3);

(b)     an amount equal to the tax fraction (being the tax fraction applicable at the time the supply is deemed to have taken place) of the lesser of any consideration in money given by the vendor for or the open market value of the supply (not being a taxable supply) to him by way of a sale on or after the commencement date by a resident of the Republic (other than a person or diplomatic or consular mission of a foreign country established in the Republic that was granted relief, by way of a refund of tax as contemplated in section 68) of any second-hand goods situated in the Republic;

[Paragraph (b) substituted by GN 2695 of 1991 and section 12 of Act 136 of 1992, amended by section 22 of Act 97 of 1993, substituted by section 9 of Act 20 of 1994 and amended by section 23 of Act 27 of 1997 and section 104 of Act 35 of 2007]

[Proviso to paragraph (b) deleted by section 129 of Act 24 of 2011 with effect from 10 January 2012]

(c)     an amount equal to the tax fraction of the consideration in money deemed by section 10(16) to be for the supply (not being a taxable supply) by a debtor to the vendor of goods repossessed under an instalment credit agreement or a surrender of goods: Provided that the tax fraction applicable under this paragraph shall be the tax fraction applicable at the time of supply of the goods to the debtor under such agreement as contemplated in section 9(3)(c),

[Words preceding the proviso substituted by section 165 of Act 31 of 2013 effective on 1 April 2014]

where the goods or services concerned are acquired by the vendor wholly for the purpose of consumption, use or supply in the course of making taxable supplies or, where the goods or services are acquired by the vendor partly for such purpose, to the extent (as determined in accordance with the provisions of section 17) that the goods or services concerned are acquired by the vendor for such purpose;