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Part II – Value-Added Tax
….

7. Imposition of value-added tax

1. Subject to the exemptions, exceptions, deductions and adjustments provided for in this
Act, there shall be levied and paid for the benefit of the National Revenue Fund a tax, to
be known as the value-added tax-

a. on the supply by any vendor of goods or services supplied by him on or after the
commencement date in the course or furtherance of any enterprise carried on by
him;

b. on the importation of any goods into the Republic by any person on or after the
commencement date; and

c. on the supply of any imported services by any person on or after the
commencement date,

calculated at the rate of 14 per cent on the value of the supply concerned or the
importation, as the case may be.

2. Except as otherwise provided in this Act, the tax payable in terms of paragraph (a) of
subsection (1) shall be paid by the vendor re ferred to in that paragraph, the tax payable
in terms of paragraph (b) of that subsection shall be paid by the person referred to in that
paragraph and the tax payable in terms of par agraph (c) of that subsection shall be paid
by the recipient of the imported services.

3.
a. Where any goods manufactured in the Republic, being of a class or kind subject
to excise duty under Part 2 of Schedule No. 1 to the Customs and Excise Act,
have been supplied at a price which does not include such excise duty and tax
has become payable in respect of the supply in terms of subsection (1)(a), value-
added tax shall be levied and paid at the rate of 14 per cent for the benefit of the
National Revenue Fund on an amount equal to the amount of such excise duty
which, subject to any rebate of such excise duty under the said Act is paid.

b. The tax payable in terms of paragraph (a) shall be paid by the person liable in
terms of the Customs and Excise Act for the payment of the said excise duty.

c. [Paragraph (c) deleted by s. 4 of Act No. 34 of 1997];
d. Subject to this Act, the provisions of the Customs and Excise Act relating to the
clearance of goods subject to excise duty and the payment of such excise duty
shall mutatis mutandis have effect as if enacted in this Act.

…
Part II – Value-Added Tax
12. Exempt supplies

The supply of any of the following goods or services shall be exempt from the tax imposed under
section 7(1)(a):
a. The supply of any financial services, but ex cluding the supply of financial services which,
but for this paragraph, would be charged with tax at the rate of zero per cent under
section 11;
b. the supply by any association not for gain of any donated goods or services or any other
goods made or manufactured by such associati on if at least 80 per cent of the value of
the materials used in making or manufacturing such other goods consists of donated
goods;
c. the supply of any accommodation in a dwelling-
i. under an agreement for the letting and hiring of the accommodation; or
ii. where the supplier is the employer of the recipient (including any employer as
defined in paragraph 1 of the Fourth Schedule to the Income Tax Act), the
recipient is entitled to occupy the accommodation as a benefit of his office or
employment and his tight thereto is limited to the period of his employment or the
term of his office or a period agreed upon by the supplier and the recipient;
d. the supply of leasehold land by way of letti ng (not being a grant or sale of the lease of
that land) to the extent that that land is used or is to be used for the principal purpose of
accommodation in a dwelling erected or to be erected on that land;
e. the supply of land (together with any im provements to such land existing on the date on
which the supplier became contractually obliged to supply such land and such existing
improvements to the recipient) where such la nd is situated outside the Republic and such
supply is made by way of sale or by way of letting;
f. the supply of any services to any of its members in the course of the management of-
i. a body corporate as defined in section 1 of the Sectional Titles Act, 1986 (Act No.
95 of 1986); or
ii. a share block company; or
iii. any housing development scheme as defined in the Housing Development Schemes for Retired Persons Act, 1988 (Act No. 65 of 1988),
where the cost of supplying such services is met out of contributions levied by such body
corporate or share block company or under such housing development scheme, as the
case may be: Provided that this paragraph shall not apply or shall apply to a limited
extent where such body corporate or share block company applies in writing to the
Commissioner, and the Commissioner, having rega rd to the circumstances of the case,
directs that the provisions of this paragraph shall not apply to that body corporate or
share block company or that the provisions of this paragraph shall apply only to a limited
extent specified by him: Provided further that this paragraph shall not apply to the
services supplied by any body corporate or share block company which manages a
property time-sharing scheme as defined in section 1 of the Property Time-sharing
Control Act, 1983 (Act No. 75 of 1983);
g. the supply by any person in the course of a transport business of any service comprising
the transport by that person in a vehicle operated by him of fare-paying passengers and
their personal effects by road or railway (excluding a funicular railway), not being a supply
of any such service which, but for this paragr aph, would be charged with tax at the rate of
zero per cent under section 11(2)(a);
h.
i. the supply by the State (including any pr ovincial administration) or any institution
of a public character of any educational services-
(aa) in respect of primary or secondary education in any school or preprimary
school education provided in any institut ion which meets the requirements of any
recognized educational authority; or

(bb) in any technikon established or deemed to have been established or
declared to be such under any Act of ParIiament; or
(cc) in any educational institution established by or under any other law of the
Republic which is in all material respects similar to a technikon referred to in
subparagraph (bb); or
(dd) in any university established by an Act of Parliament or in any university
college established under the Tertiary Education Act, 1988 (Act No. 66 of 1988);
or
(ee) in any permanent institution in the Republic approved by the Minister for the
purposes of section 18A of the Income Tax Act which has been formed-
(A) for the promotion of adult education, vocational training or technical
education; or
(B) to promote the education and training of religious or social workers; or
(C) for the education or training of phy sically or mentally handicapped persons;
ii. the supply by the State (including a provincial administration) or any institution of
a public character solely or mainly for the benefit of pupils or students of such
school, technikon, university or instituti on of any goods or services necessary for
and subordinate and incidental to the s upply of any services contemplated in
subparagraph (i) of this paragraph (i ncluding the supply of board or lodging)
where such goods or services are not supplied for a consideration other than the
payment of school fees or tuition f ees or fees for board or lodging;
i. the supply of any goods or services by an employee organization to any of its members
to the extent that the consideration for such supply consists of membership contributions.