Value-Added Tax Act, 1991 (Act No. 89 of 1991)1. Definitions |
| (1) | In this Act, unless the context otherwise indicates— |
means the cost of any goods or services where tax has been charged or would have been charged if section 7 of this Act had been applicable prior to the commencement date, in respect of the supply of goods and services or if the vendor was or would have been entitled to an input tax deduction in terms of paragraph (b) of the definition of ′input tax’;
means stevedoring services, lashing and securing services, cargo inspection services, preparation of customs documentation, container handling services and storage of transported goods or goods to be transported;
means—
| (a) | any religious institution of a public character; or |
| (b) | any other society, association or organisation, whether incorporated or not (other than an educational institution in respect of which the provisions of paragraph (c) apply), which— |
| (i) | is carried on otherwise than for the purposes of profit or gain to any proprietor, member or shareholder; and |
| (ii) | is, in terms of its memorandum, articles of association, written rules or other document constituting or governing the activities of that society, association or organization— |
| (aa) | required to utilize any property or income solely in the furtherance of its aims and objects; and |
| (bb) | prohibited from transferring any portion thereof directly or indirectly in any manner whatsoever so as to profit any person other than by way of the payment in good faith of reasonable remuneration to any SARS official or employee of the society, association or organization for any services actually rendered to such society, association or organisation; and |
| (cc) | upon the winding-up or liquidation of such society, association or organisation, obliged to give or transfer its assets remaining after the satisfaction of its liabilities to some other society, association or organization with objects similar to those of the said society, association or organisation; or |
| (c) | any educational institution of a public character, whether incorporated or not, which— |
| (i) | is carried on otherwise than for the purposes of profit or gain to any proprietor, member or shareholder; and |
| (ii) | is, in terms of its memorandum, articles of association, written rules or other document consisting of governing the activities of that educational institution— |
| (aa) | required to utilise any property or income solely in the furtherance of its aims and objects; and |
| (bb) | prohibited from transferring any portion thereof directly or indirectly in any manner whatsoever so as to profit any person other than by way of the payment in good faith of reasonable remuneration to any SARS official or employee of the educational institution for any services actually rendered to such institution; |
means the biological data to authenticate the identity of a natural person, and includes—
| (a) | facial recognition; |
| (b) | fingerprint recognition; |
| (c) | vocal recognition; and |
| (d) | iris or retina recognition |
[Definition deleted by the Tax Administration Act, 2011 (Act No. 28 of 2011)]
in relation to the supply of goods supplied under an instalment credit agreement, means—
| (a) | where the seller or lessor is a banker or financier, an amount equal to or exceeding the sum of the cost to the banker or financier of the goods, including any cost of erection, construction, assembly or installation of the goods borne by the banker or financier and the tax leviable under section 7(1)(a) in respect of such supply by the banker or financier; or |
| (b) | where the seller or lessor is a dealer, an amount equal to or exceeding the price (including tax) at which the goods are normally sold by him for cash or may normally be acquired from him for cash (including tax) and any charge (including tax) made by the seller or lessor in respect of the erection, construction, assembly or installation of the goods if such charge is financed by the seller or lessor under the instalment credit agreement; |
means the Director-General: South African Revenue Service;
means a close corporation within the meaning of the Close Corporations Act, 1984 (Act No. 69 of 1984);
means 30 September 1991;
means—
| (a) | lodging or board and lodging, together with domestic goods and services, in any house, flat, apartment, room, hotel, motel, inn, guesthouse, boarding house, residential establishment, holiday accommodation unit, chalet, tent, caravan, camping site, houseboat or similar establishment, which is regularly or systematically supplied but excluding a dwelling supplied in terms of an agreement for the letting and hiring thereof; |
[Paragraph (a) substituted by section 128(1)(a) of the Taxation Laws Amendment Act, (Act No. 25 of 2015)]
| (b) | lodging or board and lodging in a home for the aged, children, physically or mentally handicapped persons; and |
| (c) | lodging or board and lodging in a hospice; |
means the Commissioner for the South African Revenue Service appointed in terms of section 6 of the South African Revenue Service Act, 1997 (Act No. 34 of 1997), or the Acting Commissioner designated in terms of section 7 of that Act;
means a company as defined in section 1 of the Income Tax Act;
means—
| (a) | any natural person (including the estate of a natural person if such person is deceased or insolvent) and— |
| (i) | any relative of that natural person (being a relative as defined in section 1 of the Income Tax Act) or the estate of any such relative if the relative is deceased or insolvent; or |
| (ii) | any trust fund in respect of which any such relative or such estate of such relative is or may be a beneficiary; or |
| (b) | any trust fund and any person who is or may be a beneficiary in respect of that fund; or |
| (c) | any partnership or close corporation and— |
| (i) | any member thereof; or |
| (ii) | any other person where that person and a member of such partnership or close corporation, as the case may be, are connected persons in terms of this definition; or |
| (d) | any company (other than a close corporation) and— |
| (i) | any person (other than a company) where that person, his spouse or minor child or any trust fund in respect of which that person, his spouse or minor child is or may be a beneficiary, is separately interested or two or more of them are in the aggregate interested in 10 per cent or more of the company's paid-up capital or 10 per cent or more of the company's equity share capital (as defined in section 1 of the Income Tax Act) or 10 per cent or more of the voting tights of the shareholders of the company, whether directly or indirectly; or |
| (ii) | any other company the shareholders in which are substantially the same persons as the shareholders in the first mentioned company, or which is controlled by the same persons who control the first-mentioned company; or |
[Paragraph (d)(ii) substituted by section 128(1)(b) of the Taxation Laws Amendment Act, (Act No. 25 of 2015)]
| (iii) | any person where that person and the person referred to in subparagraph (i) or his spouse or minor child or the trust fund referred to in that subparagraph or the other company referred to in subparagraph (ii) are connected persons in terms of this definition; or |
| (e) | any separate enterprise, branch or division of a vendor which is separately registered as a vendor under the provisions of section 50 and any other such enterprise, branch or division of the vendor, or |
| (f) | any branch, division or separate enterprise of an association not for gain which is deemed by subsection (5) of section 23 to be a separate person for the purposes of that section and any other branch, division or separate enterprise of that association, whether or not such other branch, division or separate enterprise is a vendor, or |
| (g) | any person and any superannuation scheme referred to in section 2(2)(vii), the members of which are mainly the employees or office holders or former employees or office holders of that person; |
in relation to the supply of goods or services to any person, includes any payment made or to be made (including any deposit on any returnable container and tax), whether in money or otherwise, or any act or forbearance, whether or not voluntary, in respect of, in response to, or for the inducement of, the supply of any goods or services, whether by that person or by any other person, but does not include any payment made by any person as a donation to any association not for gain: Provided that a deposit (other than a deposit on a returnable container), whether refundable or not, given in respect of a supply of goods or services shall not be considered as payment made for the supply unless and until the supplier applies the deposit as consideration for the supply or such deposit is forfeited;
includes consideration expressed as an amount of money;
[Definition deleted by section 19(1)(a) of the Tax Administration Laws Amendment Act, 2014 (Act No. 44 of 2014)]
[Definition deleted by section 19(1)(a) of the Tax Administration Laws Amendment Act, 2014 (Act No. 44 of 2014)]
has the meaning assigned thereto in section 21A(1) the Customs and Excise Act;
[Definition substituted by section 23(1)(a) of the Tax Administration Laws Amendment Act, 2016 (Act No. 16 of 2016)]
has the meaning assigned thereto in section 21A(1) of the Customs and Excise Act;
[Definition substituted by section 23(1)(b) of the Tax Administration Laws Amendment Act, 2016 (Act No. 16 of 2016)]
means a vendor—
| (i) | to the extent that its supplies of goods and services of an activity carried on by that vendor are in terms of (b)(i) of the definition of ‘enterprise’ treated as supplies made in the course or furtherance of an enterprise; |
| (ii) | which is a major public entity, national government business enterprise or provincial government business enterprise listed in Schedule 2 or Part B or D of Schedule 3 of the Public Finance Management Act, 1999 (Act No.1 of 1999), respectively; |
| (iii) | which is a party to a "Public Private Partnership Agreement" as defined in Regulation 16 of the Treasury Regulations issued in terms of section 76 of the Public Finance Management Act, 1999 (Act No. 1 of 1999), to the extent that that party supplies goods or services in terms of that Agreement to the "institution" defined in that Regulation; |
| (iv) | which is a welfare organisation; |
| (v) | which is a municipal entity as defined in section 1 of the Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000);or |
| (vi) | which has powers similar to those of any water board listed in Part B of Schedule 3 of the Public Finance Management Act, 1999 (Act No. 1 of 1999), which would have complied with the definition of ‘local authority’ in section 1 prior to the deletion of that definition on 1 July 2006; |
"domestic goods and services"
means goods and services provided in any enterprise supplying commercial accommodation, including—
| (a) | cleaning and maintenance; |
| (b) | electricity, gas, air conditioning or heating; |
| (c) | a telephone, television set, radio or other similar article; |
| (d) | furniture and other fittings; |
| (e) | meals; |
| (f) | laundry; |
| (g) | nursing services; or |
| (h) | water; |
[Definition substituted by section 128(1)(c),(d) and (e) of the Taxation Laws Amendment Act, (Act No. 25 of 2015)]
"donated goods or services"
means goods or services which are donated to an association not for gain and are intended for use in the carrying on or carrying out of the purposes of that association;
"donation"
means a payment whether in money or otherwise voluntarily made to any association not for gain for the carrying on or the carrying out of the purposes of that association and in respect of which no identifiable direct valuable benefit arises or may arise in the form of a supply of goods or services to the person making that payment or in the form of a supply of goods or services to any other person who is a connected person in relation to the person making the payment, but does not include any payment made by a public authority or a municipality;
"dwelling"
means, except where it is used in the supply of commercial accommodation, any building, premises, structure or any other place, or any pan thereof. used predominantly as a place of residence or abode of any natural person or which is intended for use predominantly as a place of residence or abode of any natural person, including fixtures and fittings belonging thereto and enjoyed therewith;
"employee organization"
means an organisation in which a number of employees in any particular undertaking, industry, trade, occupation or profession are associated together for the purpose of regulating relations between themselves or some of them and their employers or some of their employers or mainly for that purpose, disregarding the provision of sickness, accident or unemployment benefits for the members of the organization or for the widows, children, dependants or nominees of deceased members;
"enterprise"
means—
| (a) | in the case of any vendor, any enterprise or activity which is carried on continuously or regularly by any person in the Republic or partly in the Republic and in the course or furtherance of which goods or services are supplied to any other person for a consideration, whether or not for profit, including any enterprise or activity carried on in the form of a commercial, financial, industrial, mining, farming, fishing, municipal or professional concern or any other concern of a continuing nature or in the form of an association or club; |
| (b) | without limiting the applicability of paragraph (a) in respect of any activity carried on in the form of a commercial, financial, industrial, mining, farming, fishing or professional concern— |
| (i) | the making of supplies by any public authority , of goods or services which the Minister, having regard to the circumstances of the case, is satisfied are of the same kind or are similar to taxable supplies of goods or services which are or might be made by any person other than such public authority in the course or furtherance of any enterprise, if the Commissioner, in pursuance of a decision of the Minister under this subparagraph, has notified such public authority that its supplies of such goods or services are to be treated as supplies made in the course or furtherance of an enterprise; |
| (ii) | the activities of any welfare organisation as respects activities referred to in the definition of "welfare organization" in this section; |
| (iii) | the activities of any share block company (other than the services in respect of which section 12(f) applies) where such company has applied for registration as a vendor under the provisions of section 23(3) and has been registered as such; |
| (iv) | the activities of any person who continuously or regularly supplies telecommunication services to any person who utilises such services in the Republic; |
| (v) | the activities of an implementing agency carried on in the course of implementing, operating, administering or managing a foreign donor funded project. |
[Paragraph (b)(v) substituted by section 66(1)(a) of the Taxation Laws Amendment Act, 2019 (Act No. 34 of 2019), GG42951, dated 15 January 2020 - effective 1 April 2020 (Section 66(2)]
| (vi) | the supply of electronic services by a person from a place in an export country, where at least two of the following circumstances are present: |
| (aa) | The recipient of those electronic services is a resident of the Republic; |
| (bb) | any payment to that person in respect of such electronic services originates from a bank registered or authorised in terms of the Banks Act, 1990 (Act No. 94 of 1990); |
| (cc) | the recipient of those electronic services has a business address, residential address or postal address in the Republic; |
[Paragraph (b)(vi) substituted by section 95(1)(a) of Act No. 43 of 2014]
| (vii) | the activities of an intermediary; |
[Paragraph (b)(vii) inserted by section 8(1)(a) of Notice No.18 of 2019, GG 42171, dated 17 January 2019 (Rates and Monetary Amounts and Revenue Laws Act (Act 21 of 2018) - effective 1 April 2019]
| (xiii) | where a person is neither a resident of the Republic, nor a registered vendor and that person supplies or intends to supply to a recipient solely the use or the right of use of ships, aircraft, rolling stock or parts directly in connection thereto under any rental agreement, that activity shall be deemed not to be the carrying on of an enterprise, notwithstanding that those goods are supplied for use in the Republic, if— |
[Words preceding subparagraph (aa) substituted by section 27(1)(a) of the Taxation Laws Amendment Act 2022 (Act No. 20 of 2022), Notice No. 1541, GG47826, dated 5 January 2023 - comes into operation on 1 January 2023 (section 27(2))]
| (aa) | the supply is made to a recipient that is a resident of the Republic; |
| (bb) | such goods are supplied for use by the recipient wholly or partly in the Republic; and |
| (cc) | the recipient and supplier have agreed in writing that the recipient shall— |
| (A) | in terms of the Customs and Excise Act, enter such goods for home consumption and be liable for the payment of the tax imposed in accordance with section 7(1)(b) and section 13 of this Act; and |
| (B) | not be reimbursed by the supplier of the movable goods in respect of the tax imposed under section 7(1)(b) of this Act; |
[Paragraph (b)(xiii) inserted by section 61(1) of the Taxation Laws Amendment Act, 2020 (Act No. 23 of 2020), GG44083, dated 20 January 2021 - comes into operation on 1 April 2021 (Section 61(2)]
| (xiv) | where goods are supplied by a ‘qualifying purchaser’ to another ‘qualifying purchaser’ on a ‘flash title’ basis as respectively defined in the regulations issued in terms of section 74(1) (contained in Government Notice No. R.316 published in Government Gazette No. 37580 of 2 May 2014) read with paragraph (d) of the definition of ‘exported’ in section 1(1), the activity of the first-mentioned qualifying purchaser shall be deemed not to be the carrying on of an enterprise in the Republic provided that the documentary requirements prescribed in regulation 10 of the regulation referred to in paragraph (d) of the definition of ‘exported’ in section 1(1) are complied with: Provided further that the provisions of this paragraph shall not apply where the first-mentioned qualifying purchaser applies in writing to the Commissioner and the Commissioner, having regard to the circumstances of the case, directs that the provisions of this section shall not apply to such first-mentioned qualifying purchaser; |
[Paragraph (b)(xiv) inserted by section 27(1)(b) of the Taxation Laws Amendment Act 2022 (Act No. 20 of 2022), Notice No. 1541, GG47826, dated 5 January 2023 - comes into operation on 1 January 2023 (section 27(2))]
| (xv) | the activities of the Corporation for Deposit Insurance established in terms of section 166AE of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017), shall to the extent that it makes supplies of deposit insurance as contemplated in section 166AF(1) of that Act be deemed not to be the carrying on of an enterprise; |
[Paragraph (b)(xv) inserted by section 46(1) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - comes into operation on 1 April 2024 (section 46(2))]
| (c) | [Paragraph (c) deleted by the Amendment of Taxation Laws Act No. 9 of 2006]; |
Provided that—
| (i) | anything done in connection with the commencement or termination of any such enterprise or activity shall be deemed to be done in the course or furtherance of that enterprise or activity; |
| (ii) | any branch or main business of an enterprise permanently situated at premises outside the Republic shall be deemed to be carried on by a person separate from the vendor, if— |
| (aa) | the branch or main business can be separately identified; and |
| (bb) | an independent system of accounting is maintained by the concern in respect of the branch or main business; |
(iii)
| (aa) | the rendering of services by an employee to his employer in the course of his employment or the rendering of services by the holder of any office in performing the duties of his office, shall not be deemed to be the carrying on of an enterprise to the extent that any amount constituting remuneration as contemplated in the definition of "remuneration" in paragraph 1 of the Fourth Schedule to the Income Tax Act is paid or is payable to such employee or office holder, as the case may be; |
| (bb) | subparagraph (aa) of this paragraph shall not apply in relation to any employment or office accepted by any person in carrying on any enterprise carried on by him independently of the employer or concern by whom the amount of remuneration is paid or payable; |
| (iv) | any activity carried on by a natural person essentially as a private or recreational pursuit or hobby or any activity carried on by a person other than a natural person which would, if it were carried on by a natural person, be carried on essentially as a private or recreational pursuit or hobby shall not be deemed to be the carrying on of an enterprise; |
| (v) | any activity shall to the extent to which it involves the making of exempt supplies not be deemed to be the carrying on of an enterprise; |
| (vi) | the activity of underwriting insurance business by Underwriting Members of Lloyd's of London, to the extent that contracts of insurance are concluded in the Republic, shall be deemed to be the carrying on of an enterprise; |
| (vii) | [Paragraph (c)(vii) deleted by the Revenue Laws Amendment Act No. 60 of 2008] ; |
| (viii) | the making of supplies by a constitutional institution listed in Schedule 1 of the Public Finance Management Act, 1999 (Act No. 1 of 1999), shall be deemed not to be the carrying on of an enterprise; |
| (ix) | where a person carries on or intends carrying on an enterprise or activity supplying commercial accommodation as contemplated in paragraph (a) of the definition of "commercial accommodation" in section 1, and the total value of taxable supplies made by that person in respect of that enterprise or activity in the preceding period of 12 months or which it can reasonably be expected that that person will make in a period of 12 months, as the case may be, will not exceed R120 000, shall be deemed not to be the carrying on of that enterprise; |
[Paragraph (c)(ix) substituted by section 83(1)(a) of Act No. 15 of 2016]
| (x) | where the Minister is satisfied that an activity of the municipal entity as defined in section 1 of the Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000), is of a regulatory nature and if the Commissioner, in pursuance of a decision of the Minister, has notified that ‘municipal entity’ of that decision, the supply of goods or services in respect of that activity by the municipal entity shall be deemed not to be the carrying on of an enterprise; |
| (xi) | the supply of services by a mutual association licensed in terms of section 30 of the Compensation for Occupational Injuries and Diseases Act, 1993 (Act No. 130 of 1993), to carry on the business of insurance of employers against their liabilities to employees in terms of that Act in respect of which that mutual association pays compensation that is no greater than compensation that would have been paid in similar circumstances in terms of that Act shall be deemed not to be the carrying on of an enterprise; |
| (xii) | any activity carried on by a trust contemplated in the definition of ‘sukuk’ in section 24JA(1) of the Income Tax Act shall be deemed not to be the carrying on of an enterprise; |
"entertainment"
means the provision of any food, beverages, accommodation, entertainment, amusement, recreation or hospitality of any kind by a vendor whether directly or indirectly to anyone in connection with an enterprise carried on by him;
"exempt supply"
means a supply that is exempt from tax under section 12;
"export country"
means any country other than the Republic and includes any place which is not situated in the Republic: Provided that the President may by notice in the Gazette determine that a specific country or territory shall from a date and to the extent indicated in the notice, be deemed not to be an export country;
"exported"
in relation to any movable goods supplied by any vendor under a sale or an instalment credit agreement, means—
| (a) | consigned or delivered by the vendor to the recipient at an address in an export country ; |
| (b) | delivered by the vendor to the owner or charterer of any foreign-going ship contemplated in paragraph (a) or (c) of the definition of "foreign-going ship" or to a foreign-going aircraft when such ship or aircraft is going to a destination in an export country and such goods are for use or consumption in such ship or aircraft, as the case may be; or |
| (c) | delivered by the vendor to the owner or charterer of any foreign-going ship contemplated in paragraph (b) of the definition of "foreign-going ship" for use in such ship; or |
| (d) | removed from the Republic by the recipient for conveyance to an export country , in accordance with any regulation made in terms of this Act. |
"financial services"
means the activities which are deemed by section 2 to be financial services;
"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;
"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 substituted by section 66(1)(b) of the Taxation Laws Amendment Act, 2019 (Act No. 34 of 2019), GG42951, dated 15 January 2020 - effective 1 April 2020 (Section 66(2)]
"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. |
"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; |
| (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 |
| (c) | any foreign naval ship. |
"goods"
means corporeal movable things, fixed property any real right in any such thing or fixed property, and electricity, but excluding—
| (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"
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 77(1)(a) of Act No. 17 of 2017]
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 inserted by section 66(1)(c) of the Taxation Laws Amendment Act, 2019 (Act No. 34 of 2019), GG42951, dated 15 January 2020 - effective 1 April 2020 (Section 66(2)]
"imported services"
means a supply of services that is made by a supplier who is resident or carries on business outside the Republic to a recipient who is a resident of the Republic to the extent that such services are utilized or consumed in the Republic otherwise than for the purpose of making taxable supplies;
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 substituted by section 89(a) of the Taxation Laws Amendment Act, 2018 (Act No. 23 of 2018), Notice No. 19, GG 42172, dated 17 January 2019]
"inbound duty and tax free shop"
means an inbound duty and tax free shop as contemplated in the Customs and Excise Act;
"Income Tax Act"
means the Income Tax Act, 1962 (Act No. 58 of 1962);
"Industrial Development Zone (IDZ)"
[Definition deleted by section 23(1)(c) of the Tax Administration Laws Amendment Act, 2016 (Act No. 16 of 2016)];
"Industrial Development Zone (IDZ) operator"
[Definition deleted by section 23(1)(c) of the Tax Administration Laws Amendment Act, 2016 (Act No. 16 of 2016)];
"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 |
[Paragraph (a)(ii) substituted by section 19(1)(k) of Act No. 44 of 2014]
| (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: Provided that where such second-hand goods consist of— |
| (i) | fixed property in respect of the acquisition of which transfer duty is, in terms of the Transfer Duty Act, payable or would have been payable had an exemption from transfer duty (whether in terms of the Transfer Duty Act or any other Act of Parliament) not been applicable; or |
| (ii) | a share in a share block company in respect of the original issue or registration of transfer of which stamp duty is, in terms of the Stamp Duties Act, payable or would have been payable had an exemption from stamp duty (whether in terms of the Stamp Duties Act or any other Act of Parliament) not been applicable, |
such amount shall not exceed the amount of transfer duty or stamp duty, as the case may be, which is or would have been payable in respect of such acquisition, original issue or registration of transfer, as the case may be; and
| (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: 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), |
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;
"instalment credit agreement"
means any agreement entered into on or after the commencement date whereby any goods consisting of corporeal movable goods or of any machinery or plant, whether movable or immovable—
| (a) | are supplied under a sale under which— |
| (i) | the goods are sold by the seller to the purchaser against payment by the purchaser to the seller of a stated or determinable sum of money at a stated or determinable future date or in whole or in part in instalments over a period in the future; and |
| (ii) | such sum of money includes finance charges stipulated in the agreement of sale; and |
| (iii) | the aggregate of the amounts payable by the purchaser to the seller under such agreement exceeds the cash value of the supply; and |
| (iv) |
| (aa) | the purchaser does not become the owner of those goods merely by virtue of the delivery to or the use, possession or enjoyment by him thereof; or |
| (bb) | the seller is entitled to the return of those goods if the purchaser fails to comply with any term of that agreement; or |
| (b) | are supplied under a lease under which— |
| (i) | the rent consists of a stated or determinable sum of money payable at a stated or determinable future date or periodically in whole or in part in instalments over a period in the future; and |
| (ii) | such sum of money includes finance charges, including any amount determined with reference to the time value of money, stipulated in the lease; and |
| (iii) | the aggregate of the amounts payable under such lease by the lessee to the lessor for the period of such lease (disregarding the right of any party thereto to terminate the lease before the end of such period) and any residual value of the leased goods on termination of the lease, as stipulated in the lease, exceeds the cash value of the supply; and |
| (iv) | the lessee is entitled to the possession, use or enjoyment of those goods for a period of at least 12 months; and |
| (aa) | the lessee accepts the full risk of destruction or loss of, or other disadvantage to, those goods and assumes all obligations of whatever nature arising in connection with the insurance, maintenance and repair of those goods while the agreement remains in force; or |
| (bb) |
| (A) | the lessor accepts the full risk of destruction or loss of, or other disadvantage to those goods and assumes all obligations of whatever nature arising in connection with the insurance of those goods; and |
| (B) | the lessee accepts the full risk of maintenance and repair of those goods and reimburses the lessor for the insurance of those goods, |
while the agreement remains in force;
"insurance"
means insurance or guarantee against loss, damage, injury or risk of any kind whatever, whether pursuant to any contract or law, and includes reinsurance; and "contract of insurance" includes a policy of insurance, an insurance cover, and a renewal of a contract of insurance: Provided that nothing in this definition shall apply to any insurance specified in section 2;
means a person who facilitates the supply of electronic services supplied by the electronic services supplier and who is responsible for issuing the invoices and collecting payment for the
supply;
[Definition inserted by section 8(1)(b) of Notice No. 18 of 2019, GG 42171, dated 17 January 2019 (Rates and Monetary Amounts and Revenue Laws Act (Act 21 of 2018) - effective 1st April 2019]
means a journey commencing from the ‘point of departure’ in the Republic to a destination outside the Republic (and vice versa), including (where applicable) stopovers en route to the destination, time spent in the destination country and the return journey;
[Definition substituted by section 89(b) of the Taxation Laws Amendment Act, 2018 (Act No. 23 of 2018), Notice No. 19, GG 42172, dated 17 January 2019]
"invoice"
means a document notifying an obligation to make payment;
"licensed customs and excise storage warehouse"
means a warehouse licensed by the commissioner at any place appointed for that purpose under the provisions of the Customs and Excise Act, which has been approved by the Commissioner for the storage of goods as he may approve in respect of that warehouse;
"local authority"
[Definition deleted by the Amendment of Taxation Laws Act No. 9 of 2006];
"Minister"
means the Minister of Finance;
"money"
means—
| (a) | coins (other than coins made wholly or mainly from a precious metal other than silver) which the South African Reserve Bank has issued in the Republic in accordance with the provisions of section 14 of the South African Reserve Bank Act, 1989 (Act No. 90 of 1989), or which remain in circulation as contemplated in the proviso to subsection (1) of that section, and any paper currency which under the said Act is a legal tender; |
| (b) |
| (i) | any coin (other than a coin made wholly or mainly from a precious metal) or paper currency of any country other than the Republic which is used or circulated or is intended for use or circulation as currency; |
| (ii) | any bill of exchange, promissory note, bank draft, postal order or money order, |
except when disposed of or imported as a collector's piece, investment article or item of numismatic interest;
"month"
means any of the twelve portions into which any calendar year is divided;
"motor car"
includes a motor car, station wagon, minibus, double cab light delivery vehicle and any other motor vehicle of a kind normally used on public roads, which has three or more wheels and is constructed or converted wholly or mainly for the carriage of passengers, but does not include—
| (a) | vehicles capable of accommodating only one person or suitable for carrying more than 16 persons, or |
| (b) | vehicles of an unladen mass of 3 500 kilograms or more; or |
| (c) | caravans and ambulances; |
| (d) | vehicles constructed for a special purpose other than the carriage of persons and having no accommodation for carrying persons other than such as is incidental to that purpose; |
| (e) | game viewing vehicles (other than sedans, station wagons, minibuses or double cab light delivery vehicles) constructed or permanently converted for the carriage of seven or more passengers for game viewing in national parks, game reserves, sanctuaries or safari areas and used exclusively for that purpose, other than use which is merely incidental and subordinate to that use; or |
| (f) | vehicles, constructed as or permanently converted into hearses for the transport of deceased persons and used exclusively for that purpose; |
"municipality"
means a municipality as defined in section 1 of the Income Tax Act;
"municipal rate"
means a rate levied by a municipality in terms of section 2 of the Local Government: Municipal Property Rates Act, 2004 (Act No. 6 of 2004), on ‘rateable property’ of an ‘owner’ as defined in section 1 of that Act respectively: Provided that a municipal rate does not include—
| (a) | a single charge levied by that municipality for rates and other supplies of goods or services such as— |
| (i) | electricity, gas, water; or |
| (ii) | drainage, removal or disposal of sewage or garbage; or |
| (iii) | goods or services that are incidental to, or necessary for the supply of those goods or services, to that owner; or |
| (b) | a rate levied in respect of supplies of goods or services contemplated in paragraph (a); |
"open market value"
in relation to the supply of goods or services, means the open market value thereof determined in accordance with the provisions of section 3;
means a travel policy which provides insurance cover in respect of a passenger transported from the Republic to a destination in an export country or from a place outside the Republic to another destination outside the Republic as part of an international journey;
[Definition substituted by section 89(c) of the Taxation Laws Amendment Act, 2018 (Act No. 23 of 2018), Notice No. 19, GG 42172, dated 17 January 2019]
"output tax"
in relation to any vendor, means the tax charged under section 7(1)(a) in respect of the supply of goods and services by that vendor;
"person"
includes any public authority, any municipality, any company, any body of persons (corporate or unincorporate), the estate of any deceased or insolvent person, any trust fund;
[Definition substituted by section 66(1)(d) of the Taxation Laws Amendment Act, 2019 (Act No. 34 of 2019), GG42951, dated 15 January 2020 - effective 1 April 2020 (Section 66(2)]
"precious metals"
means gold, silver, platinum, iridium and any other metals of the platinum group, and any other metal which the State President has by proclamation in the Gazette declared to be a precious metal for the purpose of this Act;
"prescribed rate"
means the rate contemplated in section 189(3) of the Tax Administration Act;
"prescribed tax rate"
[Definition deleted by section 21(c) of Act No. 136 of 1991]
"public authority"
means—
| (i) | any department or division of the public service as listed in Schedules 1, 2 or 3 of the Public Service Act, 1994 (Act No. 103 of 1994); or |
| (ii) | any public entity listed in Part A or C of Schedule 3 to the Public Finance Management Act, 1999 (Act No. 1 of 1999); or |
| (iii) | any other public entity designated by the Minister for the purposes of this Act to be a public authority; |
"recipient"
in relation to any supply of goods or services, means the person to whom the supply is made;
"registration number"
[Definition deleted by the Taxation Laws Amendment Act, 2004 (Act No. 16 of 2004)]
"rental agreement"
means—
| (a) | any agreement entered into before, on or after the commencement date for the letting of goods, other than a lease referred to in paragraph (b) of the definition of "instalment credit agreement" in this section or a financial lease as defined in the Sales Tax Act, 1978 (Act No. 103 of 1978), prior to its repeal; and |
| (b) | any rental agreement, as defined in the said Act where such agreement is in force on or after the commencement date; |
"Republic"
in the geographical sense, means the territory of the Republic of South Africa and includes the territorial waters, the contiguous zone and the continental shelf referred to respectively in sections 4, 5 and 8 of the Maritime Zones Act, 1994 (Act No. I5 of 1994);
"resident of the Republic"
means a resident as defined in section 1 of the Income Tax Act: Provided that any other person or any other company shall be deemed to be a resident of the Republic to the extent that such person or company carries on in the Republic any enterprise or other activity and has a fixed or permanent place in the Republic relating to such enterprise or other activity;
"returnable container"
means any container belonging to a class of containers in relation to which, at the time of delivery of the contents thereof, ownership of that container is not transferred to the recipient of the contents and a specifically identified amount is usually charged as a deposit by the supplier of the contents upon the express undertaking of the supplier that upon the return of that container such deposit will be refunded or allowed as a credit to such recipient or any other person returning such container;
"sale"
means an agreement of purchase and sale and includes any transaction or act whereby or in consequence of which ownership of goods passes or is to pass from one person to another;
"second-hand goods"
means—
| (a) | goods which were previously owned and used; or |
| (b) | in respect of the transfer of a unit in the circumstances referred to in Item 8 of Schedule 1 to the Share Blocks Control Act, such unit, |
but does not include—
| (i) | animals; |
| (ii) |
| (aa) | goods consisting solely of gold unless acquired for the sole purpose of supplying such goods in the same state without any further processing; |
| (bb) | gold coins contemplated in section 11(1)(k); or |
| (cc) | any other goods containing gold unless those goods are acquired for the sole purpose of supplying those goods in the same or substantially the same state to another person; |
[Subparagraph (ii) substituted by section 83(1)(b) of Act No. 15 of 2016]
| (iii) | any prospecting right, mining right, exploration right, production right, mining permit, retention permit or reconnaissance permit as defined in section 1 of the Mineral and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002), or any reconnaissance permission contemplated in section 14 of that Act granted or renewed in terms of that Act or received upon conversion pursuant to Schedule II, except when that prospecting right, mining right, exploration right, production right or interest in that right is transferred, ceded, let, sublet, alienated, varied or otherwise disposed of as contemplated in section 11 of the Mineral and Petroleum Resources Development Act, 2002; |
| (iv) | any fixed property acquired in terms of the Provision of Land and Assistance Act, 1993 (Act No. 126 of 1993); and |
| (v) | any fixed property acquired in terms of section 42E of the Restitution of Land Rights Act, 1994 (Act No. 22 of 1994); |
"service enterprise"
has the meaning assigned thereto in terms of section 21A of the Customs and Excise Act;
"services"
means anything done or to be done, including the granting, assignment, cession or surrender of any right or the making available of any facility or advantage, but excluding a supply of goods , money or any stamp, form or card contemplated in paragraph (c) of the definition of "goods";
means an operator defined in section 1 of the Special Economic Zones Act;
[Definition inserted by section 23(1)(d) of the Tax Administration Laws Amendment Act, 2016 (Act No. 16 of 2016)]
has the meaning assigned thereto in section 21A(1) of the Customs and Excise Act;
[Definition inserted by section 23(1)(d) of the Tax Administration Laws Amendment Act, 2016 (Act No. 16 of 2016)]
"share block company"
means a share block company as defined in section 1 of the Share Blocks Control Act;
"Share Blocks Control Act"
means the Share Blocks Control Act, 1980 (Act No. 59 of 1980);
| (a) | in relation to any company referred to in paragraph (a), (b) or (d) of the definition of 'company' in section 1(1) of the Income Tax Act, means the registered shareholder in respect of any share, except that where some person other than the registered shareholder is entitled, whether by virtue of any provision in the memorandum or articles of association of the company or under the terms of any agreement or contract, or otherwise, to all or part of the benefit of the rights of participation in the profits, income or capital attaching to the share so registered, that other person shall, to the extent that such person is entitled to such benefit, also be deemed to be a shareholder; or |
| (b) | in relation to any close corporation, means a member of such corporation; or |
| (c) | in relation to any co-operative, means a member of such co-operative; |
[Definition inserted by section 128(1)(h) of the Taxation Laws Amendment Act, (Act No. 25 of 2015)]
"South African Revenue Service"
means the South African Revenue Service established by section 2 of the South African Revenue Service Act, 1997;
"specified country"
[Definition deleted by section 9(1)(m) of Act No. 20 of 1994.]
"Stamp Duties Act"
means the Stamp Duties Act, 1968 (Act No. 77 of 1968);
"supplier"
in relation to any supply of goods or services, means the person supplying the goods or services;
"supply"
includes performance in terms of a sale, rental agreement, instalment credit agreement and all other forms of supply, whether voluntary, compulsory or by operation of law, irrespective of where the supply is effected, and any derivative of "supply" shall be construed accordingly;
"tax"
means the tax chargeable in terms of this Act;
"Tax Administration Act"
means the Tax Administration Act, 2011;
"taxable supply"
means any supply of goods or services which is chargeable with tax under the provisions of section 7(1)(a), including tax chargeable at the rate of zero per cent under section 11;
"tax fraction"
means the fraction calculated in accordance with the formula:
r/(100+r)
in which formula "r" is the rate of tax applicable under section 7(1);
"tax invoice"
means a document provided as required by section 20;
"tax period"
[Deleted by the Tax Administration Act, 2011 (Act No. 28 of 2011)]
"this Act"
includes the regulations;
"Transfer Duty Act"
means the Transfer Duty Act, 1949 (Act No. 40 of 1949);
"transfer payment"
[Deleted by the Revenue Laws Amendment Act, 2003];
"transitional metropolitan council"
means a transitional metropolitan council as defined in section 1 of the Local Government Transition Act, 1993 (Act No. 209 of 1993);
"trust fund"
means any fund consisting of cash or other assets the administration and control of which is entrusted to any person acting in a fiduciary capacity by any person, whether under a deed of trust or by agreement, or by a deceased person under a will made by that person;
"unconditional gift"
[Deleted by Revenue Laws Amendment Act, No. 32 of 2004];
"VAT registration number"
in relation to any vendor, means the number allocated to that vendor by the Commissioner in terms of section 24 of the Tax Administration Act;
[Definition inserted by Taxation Laws Amendment Act, 2004 (Act No. 16 of 2004)]
"vendor"
means any person who is or is required to be registered under this Act: Provided that where the Commissioner has under section 23 or 50A determined the date from which a person is a vendor that person shall be deemed to be a vendor from that date;
"welfare organization"
means any public benefit organisation contemplated in paragraph (a) of the definition of ‘public benefit organisation’ in section 30(1) of the Income Tax Act, that has been approved by the Commissioner in terms of section 30(3) of that Act, if it carries on or intends to carry on any welfare activity determined by the Minister for purposes of this Act, relating to those activities that fall under the headings —
| (a) | welfare and humanitarian; |
| (b) | health care; |
| (c) | land and housing; |
| (d) | education and development; or |
| (e) | conservation, environment and animal welfare. |
| (2) | Unless the context indicates otherwise, a word or expression to which a meaning has been assigned in the Tax Administration Act bears that meaning for purposes of this Act. |