Administration of Estates Act, 1965
R 385
Value-Added Tax Act, 1991 (Act No. 89 of 1991)Part II : Value-Added Tax18C. Adjustments for leasehold improvements |
Where goods have been supplied to a vendor, being a lessor, as contemplated in section 8(29), the lessor shall be deemed to have made a taxable supply in the course or furtherance of the lessor’s enterprise, and where a deduction of input tax would have been denied in terms of section 17(2), or to the extent that such goods are not wholly for consumption, use or supply in the course of making taxable supplies by that lessor, those goods shall be deemed to be supplied by the lessor at the time the leasehold improvements are completed, in accordance with the formula
A x B x C
in which formula—
| ‘A’ | represents the tax fraction; |
| ‘B’ | represents the amount stipulated in the agreement or if no amount is stipulated, the open market value as stipulated in section 3 applies, and |
| ‘C’ | represents the percentage of the use or application of the goods for the purposes of making other than taxable supplies at the time the leasehold improvements are completed. |
[Section 18C inserted by section 84 (1) of Act No. 17 of 2017-commences April 2018]
