Study notes: Third year:

VAT

All third year study notes

The value of a supply for transactions between connected persons – section 10(4) of the VAT Act

Author: Lesedi Seforo

Ordinarily, the value of a supply is the amount receivable in respect of such supply (i.e. the ‘price’). This is according to section 10(2) of the Value Added Tax Act 89 of 1991.

3rd year VAT crib note: Goods and services

Goods Goods are defined in section 1 of the Value-Added Tax Act (hereinafter referred to as the VAT Act) as ‘corporeal movable things, fixed property and any real right in any such thing or fixed property and electricity’ but excluding:

• Money • any right under a mortgage bond or pledge of any such thing or fixed property; and • 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 by statute, except when subsequent to its original sale or issue it was disposed of or imported as a ‘collector’s piece or investment article’.

BTW 3de jaar: basiese begrippe

Basiese begrippe

  • Registrasie: Verpligtend
    • Belasbare lewerings is meer as R1 000 000 in vorige 12 maande tydperk
    • Registrasie: Vrywillig
      • Belasbare lewerings meer as R50 000 in vorige 12 maande

VAT 3rd year: Some basic VAT principles

Basic concepts

  • Registration: compulsory
    • Taxable supplies exceeds R1 000 000 in previous 12 month period
    • Registration: Voluntary