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Deemed supplies - Coggle Diagram
Deemed supplies
Right of use of a company car/vehicle
Output tax is provided for a fringe benefit arising from the use of a 'company car'.
If employee has the obligation to maintain the vehicle , the consideration for the deemed supply is reduced by the lesser of R85 per month
The value of the consideration for thus right of use of the vehicle is deemed to 0.3% per month of the determined value if this vehicle meets the definition of "motor car".
The value of the consideration for this right of use of the vehicle is deemed to be 0.6% per month of the determined value if the input tax can be claimed on the purchase of this vehicle.
Separate parts of single supply
Only the standard rated portion need be subjected to VAT
If single amount is charged for supply but however it consists of zero-rated and standard rate portions then each portion is deemed as a separate supply.
Person ceasing to be vendor
Output tax is paid at the rate of 15/115 on the lesser of the cost of the goods or their market value.
When a person ceases to be a vendor he will have to pay an output tax on all assets in his enterprise.
Branch or Head Office outside Republic
The branch or head office must be separately identifiable
VAT Act states that if a vendor sends goods or services to a branch or head office outside South Africa,This is a deemed supply for which output vat has to be accounted for.
Fringe benefits provided to emplyees of vendor
Output VAT is payable on the value or cash equivalent of that fringe benefit
No output VAT is payable if the fringe benefit is: Tax-free
An exempt supply
A zero-rated supply
Non-supplies
where input tax is prohibited on the acquisition of goods, the supply of the goods is not subject to VAT