s 92A Temporary arrangements for Seventh Schedule supplies: distantly taxable goods and new services
92A.—(1) Where an agreement provides (expressly or impliedly) for a new Seventh Schedule supply of services to be performed progressively and continuously over a period, then —(a) if the agreement was made before 16 February 2021 — tax is not chargeable on the supply; and (b) if the agreement was or is made on or after 16 February 2021 but before 1 January 2023 — tax is chargeable on the supply to the extent that the services are performed on or after 1 January 2023. (2) Subject to subsection (1), where an invoice for a new Seventh Schedule supply of services was or is issued on or after 16 February 2021 but before 1 January 2023, tax is chargeable on the supply to the extent of —(a) the amount of the invoice received on or after 1 January 2023; or (b) the value of the services to which the invoice relates that are performed on or after 1 January 2023, if lower. (3) Subsection (2) does not apply if the whole amount of the invoice is received, or the whole of the services is performed, before 1 January 2023. (4) Where an invoice for a Seventh Schedule supply of goods was or is issued on or after 16 February 2021 but before 1 January 2023, tax is chargeable on the supply to the extent of —(a) the amount of the invoice received on or after 1 January 2023; or (b) the value of the goods to which the invoice relates that were removed or made available to the person to whom they are supplied on or after 1 January 2023, if lower. (5) Subsection (4) does not apply if the whole amount of the invoice is received, or the whole of the goods is removed or made available to the person to whom they are supplied, before 1 January 2023. (6) Subject to subsection (1), where an invoice for a new Seventh Schedule supply of services is issued on or after 1 January 2023 —(a) tax is chargeable on the supply to the extent of the amount of the invoice received on or after that date; but (b) the taxable person may elect for the tax to be chargeable only to the extent of the value of the services that are performed on or after that date, if lower. (7) Subject to subsection (1) and despite subsection (6), where an invoice for a new Seventh Schedule supply of services is issued on or after 1 January 2023 but before the day on which the person making the supply is registered in accordance with the First Schedule —(a) tax is chargeable on the supply to the extent of the amount of the invoice received on or after the day on which the person making the supply is registered in accordance with the First Schedule; but (b) the person may elect for the tax to be chargeable only to the extent of the value of the services that are performed on or after 1 January 2023, if lower. (8) Subsections (6) and (7) do not apply if the whole amount of the invoice is received, and the whole of the services is performed, on or after 1 January 2023. (9) Where an invoice for a Seventh Schedule supply of goods is issued on or after 1 January 2023 —(a) tax is chargeable on the supply to the extent of the amount of the invoice received on or after that date; but (b) the taxable person may elect for the tax to be chargeable only to the extent of the value of the goods that are removed or made available to the person to whom they are supplied on or after that date, if lower. (10) Despite subsection (9), where an invoice for a Seventh Schedule supply of goods is issued on or after 1 January 2023 but before the day on which the person making the supply is registered in accordance with the First Schedule —(a) tax is chargeable on the supply to the extent of the amount of the invoice received on or after the day on which the person making the supply is registered in accordance with the First Schedule; but (b) the person may elect for the tax to be chargeable only to the extent of the value of the goods that are removed or made available to the person to whom they are supplied on or after 1 January 2023, if lower. (11) Subsections (9) and (10) do not apply if the whole amount of the invoice is received, and the whole of the goods is removed or made available to the person to whom they are supplied, on or after 1 January 2023. (11A) Subject to subsections (14A), (14B) and (14C), tax is chargeable under subsections (1)(b), (2), (4), (6), (7), (9) and (10) at the tax rate of 8% on the chargeable value of the supply.[Act 35 of 2022 wef 01/01/2023] (12) Tax chargeable —(a) under subsection (1) for any services under subsection (1)(b) that are covered by an invoice issued or consideration received before 1 January 2023; or (b) under subsection (2) or (4), must be accounted for in the return for the accounting period in which the later of the following falls: (c) 1 January 2023; (d) the day on which the person making the supply is registered in accordance with the First Schedule. (13) Tax chargeable under subsections (6) and (9) must be accounted for in the return for the accounting period in which the earlier of the following falls:(a) the invoice for the new Seventh Schedule supply of services or Seventh Schedule supply of goods (as the case may be) is issued; (b) the consideration for the amount of the invoice is received by the supplier. (14) Tax chargeable under subsection (7) or (10) must be accounted for in the return for the accounting period in which the consideration for the amount of the invoice is received on or after the day on which the person making the supply is registered in accordance with the First Schedule. (14A) Where —(a) the invoice for a supply under subsection (1)(b), (6), (7), (9) or (10) is issued on or after 1 January 2024; and (b) any consideration for the supply remains to be paid, or any part of the supply remains to be performed, on or after 1 January 2024, then tax is chargeable — (c) at the tax rate of 8% on the part or the whole of the chargeable value of the supply that is treated as taking place under section 11, 11A, 11B or 12 before 1 January 2024; and (d) at the tax rate of 9% on the part or the whole of the chargeable value of supply that is treated as taking place under section 11, 11A, 11B or 12 on or after 1 January 2024.[Act 35 of 2022 wef 01/01/2023] (14B) Despite subsection (14A) —(a) the taxable person or person (as the case may be) may elect for tax to be chargeable at 8% on the higher of —(i) the amount of any consideration received on or after 1 January 2023 but before 1 January 2024, less any amount of the consideration that is attributable to the part of the supply performed before 1 January 2023; and (ii) the value of the part of the supply performed on or after 1 January 2023 but before 1 January 2024; and (b) (if the taxable person or person so elects under paragraph (a)) tax is chargeable at 9% on the chargeable value of the supply less the amount of the consideration or the value on which tax is charged at 8% under paragraph (a).[Act 35 of 2022 wef 01/01/2023] (14C) Where —(a) the invoice for a supply under subsection (1)(b), (2), (4), (6), (7), (9) or (10) is issued before 1 January 2024; and (b) any consideration for the supply remains to be paid, or any part of the supply remains to be performed, on or after 1 January 2024, then tax is chargeable — (c) at 9% on the lower of —(i) the amount of consideration received on or after 1 January 2024; and (ii) the value of the part of the supply performed on or after 1 January 2024, or (if the amount and value are the same) on either of them; and (d) at 8% on the chargeable value of the supply less the amount of consideration or the value on which tax is charged at 9% under paragraph (c).[Act 35 of 2022 wef 01/01/2023] (14D) Sections 39D, 39E and 39F apply to the cases in subsections (14B) and (14C) as if —(a) a reference in those sections to section 39B were a reference to subsection (14B); and (b) a reference in those sections to section 39C were a reference to subsection (14C).[Act 35 of 2022 wef 01/01/2023] (15) For the purposes of this section, where, as the case may be —(a) only a part of the services under a new Seventh Schedule supply of services is performed; or (b) only a part of the goods under a Seventh Schedule supply of goods is removed or made available to the person to whom they are supplied, then the value of the part is a value that is, in the opinion of the Comptroller, reasonably attributable to the part. (16) [Deleted by Act 35 of 2022 wef 01/01/2023] (17) For the purposes of paragraphs 1(1)(b) and (2)(b) and 1A(1)(b) and (2)(b) of the First Schedule, references to taxable supplies and Seventh Schedule supplies of a person do not include any Seventh Schedule supplies of goods or new Seventh Schedule supplies of services of the person for the purposes of any 12‑month period mentioned in those provisions that commences before 1 January 2023.[Act 35 of 2022 wef 01/01/2022] (18) For the purposes of paragraphs 1(2)(a)(ii) and 1A(2)(a) of the First Schedule in relation to a business transferred before 1 January 2023, references to taxable supplies and Seventh Schedule supplies of the transferee do not include any Seventh Schedule supplies of goods or new Seventh Schedule supplies of services of the transferee that take place before 1 January 2023. (19) In this section —“chargeable value”, in relation to a supply, means the value of the services, the amount of the invoice or the value of the goods on which tax is chargeable under subsection (1)(b), (2), (4), (6), (7), (9) or (10), as the case may be; “new Seventh Schedule supply of services” has the meaning given by section 91(5).[Act 35 of 2022 wef 01/01/2023] (20) In this section, a reference to a part of a supply being performed before, or on or after, a specified date is a reference to —(a) for a supply of goods —(i) where the goods to which the supply relates are to be removed — the removal of the part of the goods before, or on or after, that date, as the case may be; and (ii) where the goods to which the supply relates are not to be removed — the making available of the part of the goods to the person to whom they are supplied before, or on or after, that date, as the case may be; and (b) for a supply of services — the part of the performance of the services before, or on or after, that date, as the case may be.[Act 35 of 2022 wef 01/01/2023] (21) Unless otherwise specified, this section applies despite anything in —(a) section 11, 11A, 11B or 12; or (b) Division 1 of Part 6A.[Act 35 of 2022 wef 01/01/2023]