s 39B Supplies spanning specified change: election for tax chargeable at old and new rates
39B.—(1) Subject to section 39C, where a supply spans a specified change that is an increase in the tax rate or that results in a supply becoming a standard-rated supply and —(a) before the date of the specified change, the supply is performed in part or in whole; and (b) on or after that date —(i) the invoice is issued for the supply; or (ii) any consideration is received for the supply, then — (c) the person making the supply or (in the case of a reverse charge supply) the recipient of the supply may elect for tax to be chargeable at the old rate or (if, before the specified change, the supply was a supply that is not chargeable to tax) for tax to not be chargeable, on the higher of —(i) the value of the supply for which any consideration is received before the date of the specified change; and (ii) the value of the supply performed before that date; and (d) (if the person so elects under paragraph (c)) tax is chargeable at the new rate on the value of the supply less the higher of the values in paragraph (c). (2) Where a supply that is a supply of services by virtue only of paragraph 5(3) of the Second Schedule spans a specified change mentioned in subsection (1) and —(a) before the date of the specified change, some or all of the goods are, without consideration, put to use, or made available to any person for use, for any purpose other than a purpose of the business concerned; and (b) on or after that date, the supply of services is treated under section 11A(5)(a) as taking place at a time or day described in that provision, then — (c) the person making the supply may elect for tax to be chargeable at the old rate on the value of the supply of the goods put to use, or made available to any person for use, for any purpose other than a purpose of the business concerned before the date of the specified change; and (d) (if the person so elects under paragraph (c)) tax is chargeable at the new rate on the value of the supply less the value on which tax is charged at the old rate under paragraph (c). (3) Where a supply spans a specified change that is a decrease in the tax rate or that results in a supply ceasing to be a standard-rated supply and —(a) before the date of the specified change — (i) the invoice is issued for the supply; or (ii) any consideration is received for the supply; and (b) on or after that date, the supply is performed in part or in whole, then — (c) the person making the supply or (in the case of a reverse charge supply) the recipient of the supply may elect for tax to be chargeable at the new rate or (if, on or after the specified change, the supply is a supply that is not chargeable to tax) for tax to not be chargeable, on the higher of —(i) the value of the supply for which any consideration is received on or after the date of the specified change; and (ii) the value of the supply performed on or after that date; and (d) (if the person so elects under paragraph (c)) tax is chargeable at the old rate on the value of the supply less the higher of the values in paragraph (c). (4) No election may be made under this section in respect of a supply to which paragraph 6 of the Second Schedule applies.[Act 35 of 2022 wef 01/01/2023]