Page 284 - Juta's Indirect Tax

Exports VaLue-added tax act: reGuLatIOns and nOtIces Exports
(f)
(i) international organisation established in terms of a Constitutive Act, a constitution or a charter for the purposes of promoting peace and security, human and people’s rights and political and socio-economic development or any similar purpose; or
(ii) organisation which is similar to an association not for gain or a welfare organisation which is registered as such in that export country;
and established in an export country and not conducting any activity in the Republic; or
for purposes of Part Two Section A, a person who is not a resident of the Republic who acquires goods from a vendor in the Republic with the sole purpose of selling those goods to another person who is not a resident of the Republic;
‘registrable goods’ means movable goods including any aircraft, ship or other vessel, motor cycle or other vehicle, caravan or trailer in respect of which any form of registration is required under any law in force in an export country;
‘SARB’ means the South African Reserve Bank;
‘standard rate’ means the rate of tax levied in terms of section 7(1)(a) of the Act;
‘time of export’ means in the case of transport by air or sea, the time as contemplated in section 38(3)(b)(i) and (ii)
of the Customs and Excise Act;
‘the Act’ means the Value-Added Tax Act, 1991 (Act No. 89 of 1991);
‘the TA Act’ means the Tax Administration Act, 2011 (Act No. 28 of 2011);
‘tourist’ means a person who is a non-South African passport holder or a South African passport holder who is a
permanent resident of an export country, residing in that export country at the time of the purchase and for whom a refund is requested;
‘VAT Refund Administrator’ or ‘VRA’ means a person appointed by the Commissioner to administer the refund of tax contemplated in Part One of these regulations;
‘warehouse’, for purposes of Part Two -Section B, means the agent’s premises where goods must be stored by such agent while being consolidated prior to export;
‘zero rate’ means the rate of tax levied in terms of section 7(1)(a) read with section 11(1) of the Act substantiated by documentary proof as contemplated in section 11(3).
PART ONE
PROCEDURES FOR GRANTING OF REFUNDS OF TAX TO QUALIFYING PURCHASERS RESIDING IN OR CONDUCTING BUSINESS IN EXPORT COUNTRIES
1. Introduction
Part One of these regulations applies where movable goods are supplied by a vendor to a qualifying purchaser and the qualifying purchaser is responsible for exporting the goods from the Republic. The vendor is obliged to levy tax at the standard rate on the supply to the qualifying purchaser. The qualifying purchaser is subsequently entitled to a refund of tax from the VRA subject to certain limitations or conditions contained herein.
2. Responsibilities of the vendor
(1) The vendor must levy tax at the standard rate on the supply of movable goods to a qualifying purchaser.
(2) The vendor must issue a tax invoice to the qualifying purchaser and should advise the qualifying purchaser of the
entitlement to a refund of the tax from the VRA.
(3) The vendor supplying second-hand goods on which input tax as contemplated in paragraph (b) of the de nition of
‘input tax’ in section 1(1) of the Act was deducted by the vendor or any other person who is a connected person in relation to the vendor when the goods were acquired, must ensure that the tax invoice includes the particulars notifying the full and proper description of the second-hand goods.
(4) The vendor has no further responsibility with regard to the refund to be made by the VRA, other than to furnish information to SARS when called upon to do so.
3. Responsibilities of the qualifying purchaser or the cartage contractor
(1)
The qualifying purchaser must ensure that the movable goods are exported–
(a) from the Republic within 90 days from the date of the tax invoice, unless otherwise provided for in these
regulations;
(b) via a designated commercial port in accordance with the prescribed Customs and Excise procedure, which
requires that the relevant goods must rst be declared to a customs of cial before the claim for a refund of tax is submitted to the VRA. In instances where the movable goods are exported—
(i)
via one of the ports listed in paragraphs (a) or (b) of the de nition of ‘designated commercial port’ by the qualifying purchaser personally or by the qualifying purchaser’s duly appointed agent for purposes of exporting the movable goods, the qualifying purchaser or in case the qualifying purchaser is not a natural person, the person duly authorised to represent the qualifying purchaser must—
(aa) (bb)
(cc)
present himself or herself to a customs of cial at a designated commercial port together with the movable goods and the corresponding tax invoice(s) and to a VRA of cial where the VRA is present at a designated commercial port;
ensure that, in the case of movable goods which are too large to be kept as hand-luggage and are transported as part of checked-in luggage, the tax invoice(s) in relation to the relevant movable goods is/are endorsed by the customs of cial (and the VRA of cial where the VRA has a physical presence at a designated commercial port) to the effect that the relevant movable goods have been inspected by the customs of cial (and VRA of cial where applicable) prior to the movable goods being checked in as part of the main luggage;
provide the customs or VRA of cial with all the relevant details required; and
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