8.       Time of supply

            (1) Subject to this Act, a supply of goods or services occurs when-

     (a)     an invoice for the supply is issued by the supplier; or

     (b)     any payment for the supply is received,

          whichever is the earlier.

            (2) Subject to subsection (3), where the supplier and the recipient are related persons, the supply occurs-

     (a)     in the case of a supply of goods which are to be removed, when the goods are removed;

     (b)     in the case of a supply of goods which are not to be removed, when the goods are made available to the recipient; or

     (c)     in the case of a supply of services, when the services are performed.

            (3) Subsection (2) does not apply to a supply between related persons to the extent that an invoice is issued, or payment is received for the supply on or before the earlier of-

     (a)     the day on which the return is furnished for the tax period during which that supply would, but for subsection (2), have been made; or

     (b)     the last day prescribed by this Act for furnishing the return for the tax period during which that supply would, but for subsection (2), have been made.

            (4) Subject to subsection (18), a supply of goods under a credit agreement occurs when the goods are delivered or the time any payment for the supply is received, whichever is earlier.

            (5) A supply of goods pursuant to a lay-bye agreement occurs when the goods are delivered to the purchaser.

            (6) A supply of goods or services under section 4(6) occurs when the goods or services are applied to a different use.

            (7) A supply of goods under section 4(7) occurs when the goods are repossessed, or where the debtor may under any law be reinstated in his rights and obligations under the credit agreement, the day after the last day of any period during which the debtor may under such law be so reinstated.

            (8) A supply of services under section 4(8) occurs when the seller obtains the right to retain any amount paid by the purchaser or when the seller recovers any amount owing by the purchaser under the agreement.

            (9) A supply for a consideration in money received by the supplier by means of a machine, meter, or other device operated by coin, note, or token occurs when the coin, note, or token is taken from that machine, meter, or other device by or on behalf of the supplier.

            (10) A supply of goods or services referred to in section 4(11) by a registered person occurs when the goods are delivered to, or the services performed for, the branch or main business.

            (11) Goods supplied under a rental agreement or services supplied under an agreement which provides for periodic payments, are treated as successively supplied for successive parts of the period of the agreement, and each of the successive supplies occurs when a payment becomes due or is received, whichever is the earlier.

            (12) Where-

     (a)     goods described under section 4(1)(a)(iii) are supplied; or

     (b)     goods or services are supplied directly in the construction, major reconstruction, manufacture, or extension of a building or engineering work and the consideration becomes due in instalments or periodically, the goods or services are treated as successively supplied for each period to which a payment for the goods or services relates and each successive supply occurs when payment in respect of the supply becomes due, is received, or an invoice relating only to that payment is issued, whichever is the earlier.

            (13) A supply under section 4(20) occurs when the supply under section 4(2), to which it relates, occurs.

            (14) To the extent that the issuance of a token, voucher, or stamp is a supply under section 4(22), the supply occurs when the token, voucher, or stamp is issued.

            (15) A supply under section 4(24) of goods removed from a value added tax manufacturing warehouse or of services rendered by an international financial services centre company occurs when the goods are removed from the warehouse or when the services are rendered.

            (16) The forfeit of a deposit (other than a deposit on a returnable container) is a supply of services when the deposit is forfeited.

            (17) Notwithstanding the provisions of this section, a supply of immovable property occurs when the transfer deedis registered with the Registrar of Deeds or when any payment is received,whichever occurs earlier.

            (18) A supply of-

     (a)     an electrical connection under the Botswana Power Corporation's Rural Electrification Scheme; or

     (b)     housing by the Botswana Housing Corporation under the Tenant Purchase Scheme, pursuant to a hire-purchase agreement, occurs as each payment is due or is made under that agreement, whichever is earlier.

9.       Value of supply

            (1) Subject to this Act, the value of a supply of goods or services is the amount of the consideration for the supply.

            (2) Where a portion of the price of a supply represents tax imposed by this Act that is not accounted for separately, the value of the supply is the price reduced by an amount equal to the tax fraction multiplied by that price.

            (3) Where-

     (a)     a supply is made by a registered person for no consideration or for a consideration that is less than the fair market value of that supply; and

     (b)  (i)       the supplier and the recipient are related persons; or

          (ii)       the recipient is a charitable organization, institution of religious worship, educational institution, old-age home, orphanage, children's home, or institution of a similar nature,

the value of the supply is the fair market value of the supply.

            (4) Where a registered person makes a supply of goods or services referred to in section 4(6), the value of the supply is the lesser of-

     (a)     the consideration paid or payable by the registered person for those goods or services; or

     (b)     the fair market value of the supply.

            (5) The Minister may prescribe rules to determine the value of a supply governed by subsection (4) where the registered person applies less than the entire goods or services to a different use.

            (6) The value of a supply of goods under a credit agreement is the cash value of the supply.

            (7) Where a debtor makes a supply of goods as a result of the repossession of those goods from the debtor under a credit agreement, the value of the supply is an amount equal to the balance of the cash value of the supply of those goods to the debtor that has not been recovered at the time of the supply.

            (8) For purposes of subsection (7), the balance of the cash value of the supply is the amount remaining after deducting from the cash value so much of the sum of the payments made by the debtor under the credit agreement as, on the basis of an apportionment in accordance with the rights and obligations of the parties to such agreement, may properly be regarded as having been made in respect of the cash value of the supply.

            (9) The value of a supply of services under section 4(8) is an amount equal to the amount referred to in that section that is retained or recoverable.

            (10) Where the grant of a right to receive goods or services for a monetary value stated on a token, voucher, or stamp is a supply under section 4(22), the value of the supply is an amount equal to the amount by which the consideration exceeds the monetary value of the token, voucher, or stamp.

            (11) Where a token, voucher, or stamp is issued by a registered person for no consideration and the holder thereof is entitled on surrender thereof to another person, being a supplier of goods or services, to a discount on the price of goods or services supplied to the holder, the value of the supply of such goods or services by the supplier includes the monetary value stated on the token, voucher, or stamp, less the tax fraction of the monetary value if the token, voucher, or stamp is surrendered for a taxable supply.

            (12) For purposes of subsection (11), the monetary value is inclusive of tax.

            (13) Where a taxable supply is not the only matter to which the consideration for the supply relates, the value of the supply is such part of the consideration as is properly attributable to it.

            (14) The value of a supply of goods or services referred to in section 4(11) by a registered person is the lesser of-

     (a)     the cost, excluding tax, to the registered person of the acquisition, manufacture, assembly, construction, or production of such goods or services, including the costs of transportation or delivery of the goods or services to the branch or main business; or

     (b)     the fair market value of the supply.

            (15) Except as otherwise provided in this section, if a supply is made for no consideration the value of the supply is nil.

            (16) The value of a supply of services under section 4(10) is the amount received in respect of the bet, reduced by an amount equal to the tax fraction multiplied by the amount received in respect of the bet.

            (17) The value of a supply referred to in section 4(20) shall be the consideration for the acquisition of the taxable activity reduced by an amount which bears to the amount of such consideration the same ratio as the intended use or application of the taxable activity for making taxable supplies bears to the total intended use or application of the taxable activity.

            (18) The value of goods removed from a value added tax manufacturing warehouse referred to in section 4(24) is the fair market value of the supply.

            (19) For the purposes of this Act, consideration paid or payable in kind is the fair market value of the consideration as determined under section 3(5).

             (20) The value of a supply of an electrical connection or a supply of housing referred to under section 8 (18) is an amount equal to the instalment due or paid under the scheme.

10.     Zero rating

            (1) Where, but for this section, a supply of goods or services would be charged with tax under section 7(1)(a), the supply shall be charged with tax at the rate of zero percent if it is specified in paragraph 2 of the First Schedule.

            (2) Where a registered person has applied the rate of zero percent to a supply under this section, the registered person shall obtain and retain such documentary proof acceptable to the Commissioner General substantiating the person's entitlement to apply the zero rate to the supply.

            (3) Notwithstanding any provision of this Act, the Minister may by Order deny zero rating of supplies exported from Botswana as specified in the First Schedule if such action is necessary to protect the revenue or to offset restrictions placed on zero rating of comparable supplies by the export country as defined in the First Schedule.

11.     Exempt supply

            (1) Subject to subsection (2), a supply of goods or services is an exempt supply if it is specified in paragraph 2 of the Second Schedule.

            (2) A supply of goods or services is not an exempt supply if, in the absence of subsection (1), the supply would be charged with tax at the rate of zero percent under section 10.