Page 288 - Juta's Indirect Tax

Exports VaLue-added tax act: reGuLatIOns and nOtIces Exports
(a) the vendor ensures that the movable goods are delivered (irrespective of the contractual conditions of delivery) to any of the harbours or airports listed in the de nition of ‘designated commercial port’ from where the movable goods are to be exported by the qualifying purchaser.
The export of movable goods as well as the declaration of such goods at ports other than those ports listed in the de nition of ‘designated commercial port’, may be allowed in exceptional circumstances on application to and after approval by the Commissioner;
(b) the movable goods are exported by means of a pipeline or electrical transmission line;
(c) the vendor supplies the goods to a qualifying purchaser on a ash title basis; (d) the vendor supplies the movable goods to a qualifying purchaser and—
(i) the time of supply is regulated by sections 9(1) or 9(3)(b)(i) or (ii) of the Act;
(ii) the movable goods are subject to a process of repair, improvement, manufacture, assembly or alteration
by a vendor other than the vendor who supplied the goods in the Republic;
(iii) the vendor ensures that the movable goods are delivered to the premises of the vendor responsible for
further processing, repair, improvement, manufacture, assembly or alteration for such further processing,
repair, improvement, manufacture, assembly or alteration; and
(iv) the vendor responsible for the further processing, repair, improvement, manufacture, assembly or
alteration ensures that the movable goods are subsequently delivered to any of the harbours or airports
listed in the de nition of ‘designated commercial port’; or
(e) the vendor supplies movable goods to a qualifying purchaser or registered vendor and the movable goods are—
(i) situated at the designated harbour or airport;
(ii) delivered to either the port authority, master of the ship, a container operator, the pilot of an aircraft or are
brought within the control area of the airport authority; and (iii) destined to be exported from the Republic.
(3) The vendor electing not to apply the zero rate, must levy tax at the standard rate and the qualifying purchaser can apply for a refund in accordance with the provisions of Part One of these regulations.
9. Responsibilities of the vendor supplying the movable goods and the vendor responsible for further processing, repair, improvement, manufacture, assembly or alteration of the movable goods
(1) The vendor supplying the movable goods must—
(a) ensure that the movable goods are delivered to any of the designated harbours or airports listed in the de nition
of ‘designated commercial port’. This provision will not apply where the movable goods are delivered to the vendor responsible for further processing, repair, improvement, manufacture, assembly or alteration before the movable goods are exported;
(b) obtain and retain for a period of ve years as contemplated in section 55 of the Act and Part A of Chapter 4 of the TA Act the relevant documentary proof as stipulated in paragraph 10;
(c) comply with the procedures as stipulated in paragraphs 15 and 16;
(d) ensure that the zero rate is not applied in respect of the supply of second-hand goods where the proviso to
section 11(1) of the Act read with the provisions of section 10(12) of the Act are applicable.
(2) The vendor responsible for the further processing, repair, improvement, manufacture, assembly or alteration of the
goods must—
(a) after completion of the said process, ensure that the movable goods are delivered to any of the designated commercial
harbours or airports as listed in the de nition of ‘designated commercial ports’ where required to do so;
(b) obtain and retain the export documentation prescribed under the Customs and Excise Act;
(c) comply with the procedures as stipulated in paragraphs 15 and 16;
(d) provide the vendor with a statement containing the details as set out in paragraph 10(1)(g)(ii) within 21 days
from the date that the movable goods were exported or required to be exported.
10. Documentation*
(1) The vendor supplying the movable goods must obtain and retain—
(a) a copy of the zero-rated tax invoice issued to the qualifying purchaser. In the case of the supply consisting
of 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 or may be deducted by the vendor or any other person who is a connected person in relation to the vendor when the goods were acquired, the vendor must ensure that the tax invoice complies with the provisions of section 20(4) of the Act;
(b) a copy of the qualifying purchaser’s—
(i) passport including those pages re ecting the qualifying purchaser’s name, passport number and country
of residence. Where the qualifying purchaser or in the case where the qualifying purchaser is not a natural person, the person duly authorised to represent the qualifying purchaser was in the Republic at the time of supply, the passport must also include those pages re ecting an endorsement—
(aa) re ecting entry into the Republic; and
(bb) re ecting exit from the Republic;
(ii) trading license or any other equivalent acceptable to the Commissioner proving that the business is
conducted in an export country as well as the letter of authorisation authorising the person to represent the qualifying purchaser and a copy of the authorised person’s passport; or
* Note that all documentation must be kept or retained as contemplated in section 30 of the TA Act read with public notice GN 787 published in GG 35733 of 1 October 2012.
280 Juta’s IndIrect tax 2016