(2)     Where a person is deregistered in terms of the Sixth Schedule to the Income Tax Act and registers as a vendor, any supplies of goods or services-

 

(a)     made by that person before it became a vendor;

(b)     in respect of which the time of supply would have been deemed to have taken place while that person was a registered micro business had it been registered as a vendor during that time;

(c)     which were not included in the taxable turnover of that person while it was a registered micro business; and

(d)     the receipts for which are received after it became a vendor,

must be deemed to be made in the course or furtherance of that vendor’s enterprise in the tax period in which those receipts are received.

(3)     Subject to section 18(4)(b), where a person is deregistered in terms of the Sixth Schedule to the Income Tax Act and registers as a vendor, any value-added tax paid on expenditure it incurred while it was a registered micro business may not be deducted by that vendor as input tax.

[Section 78A inserted by section 115 of Act 60 of 2008 effective on 1 March 2009