S.L. 406.21 Art. 6Supplies between members of a VAT Group.

(1) Notwithstanding the provisions of article 4 of the

Act, and without prejudice to the powers of the Commissioner arising in terms of sub-regulation (2), any supply of goods or supply of services made by one member of a VAT Group to another member of that VAT Group shall be disregarded for the purposes of the Act.

(2) The Commissioner may, in order to prevent tax avoidance or evasion through the application of the provisions of these regulations, direct that the provisions of sub-regulation (1) shall not apply to a supply of goods or services made by one member of a VAT Group to another member of that VAT Group which supply would, had the VAT Group not existed, fall within the scope of article 4 of the Act.

(3) Where a determination is made by the Commissioner pursuant to sub-regulation (2), the supplies made by a member of the VAT Group to another member of the VAT Group shall be treated, for the purposes of the Act, as supplies made by the Group Reporting Entity to itself.

(4) The Commissioner shall, in any direction given in terms of sub-regulation (2), provide any such instructions as may be necessary to enable the Group Reporting Entity to fulfil its obligations under the Act.