Page 289 - Juta's Indirect Tax

Exports VaLue-added tax act: reGuLatIOns and nOtIces Exports
(iii) in the case of a foreign diplomat, passport and a letter from the relevant diplomatic or consular mission stating that he or she is departing from the Republic permanently;
(c) the qualifying purchaser’s order or the contract between the vendor and the qualifying purchaser;
(d) proof of payment in respect of the movable goods supplied to the qualifying purchaser. Proof of payment must,
where applicable, be in compliance with the SARB requirements;
(e) proof of delivery of the movable goods to a designated harbour or airport;
(f) the export documentation prescribed under the Customs and Excise Act; and
(g) the following additional documentation in the event that the provisions of subparagraph 8(2)(d) apply:
(i) proof of delivery of the movable goods to the vendor responsible for the further processing, repair, improvement, manufacture, assembly or alteration;
(ii) a statement from the vendor responsible for the further processing, repair, improvement, manufacture, assembly or alteration containing—
(aa) the invoice number and the date of issue of the tax invoice by the vendor responsible for the further
processing, repair, improvement, manufacture, assembly or alteration to the qualifying purchaser for the services rendered or the contract for services rendered entered into by the aforementioned vendor and the qualifying purchaser;
(bb) con rmation that the movable goods supplied by the vendor and delivered to the qualifying purchaser have been used in the further processing, repair, improvement, manufacture, assembly or alteration of the movable goods;
(cc) details of the export documentation prescribed under the Customs and Excise Act, for example the export declaration’s MRN and LRN reference numbers:
Provided that where the movable goods are exported by means of a pipeline or electrical transmission line, the Commissioner will, on application by the vendor, determine the documentary proof to be obtained and retained by the vendor, including, but not limited to—
(i) the export documentation prescribed under the Customs and Excise Act; (ii) a tax invoice; and
(iii) proof of payment which must, where applicable, be in compliance with the SARB requirements.
PART TWO – SECTION B
PROCEDURES FOR THE VENDOR WHO ELECTS TO SUPPLY MOVABLE GOODS TO A QUALIFYING PURCHASER AT THE ZERO RATE WHERE THE MOVABLE GOODS ARE TO BE EXPORTED VIA ROAD OR RAIL
11. Introduction
(1) Part Two – Section B of these regulations applies—
(a) where a vendor supplies movable goods to a qualifying purchaser and those goods are to be exported from the
Republic by the qualifying purchaser’s agent and the vendor elects to levy tax at the zero rate on the supply of
the goods; or
(b) to the supply and exportation of speci c lubricants by the manufacturers thereof in the Oil and Gas Industry.
12. Movable goods exported via road and rail
(1) For purposes of Part Two – Section B of these regulations, ‘proof of export’ includes the export documentation prescribed under the Customs and Excise Act.
(2) In order for the vendor to elect to supply the movable goods exported by road or rail at the zero rate—
(a) the vendor must—
(i) consign or deliver (irrespective of the contractual conditions of delivery) the movable goods to the agent’s premises; or
(ii) ensure that the movable goods are delivered to the agent’s premises.
(3) The role and responsibilities of the vendor
(a) The vendor accepts an order from, or enters into an agreement with, a qualifying purchaser. (b) The vendor must—
(i) obtain con rmation—
(aa) of the appointment of an agent by the qualifying purchaser; and (bb) that the qualifying purchaser’s agent is a registered customs client;
(ii) issue a tax invoice to the qualifying purchaser or its agent for the goods supplied;
(iii) receive payment in respect of the supply of goods from the qualifying purchaser;
(iv) consign or deliver (irrespective of the contractual conditions of delivery) the movable goods to the agent’s
premises or ensure that the movable goods are delivered to the agent’s premises;
(v) obtain and retain—
(aa) proof of delivery of the movable goods to the agent;
(bb) con rmation of proof of export from the agent within the required time period; and
(cc) a statement from the agent containing an inventory reconciliation of all the movable goods received from the vendor and exported by the agent or a cartage contractor engaged by either the qualifying purchaser or its agent to the speci c qualifying purchaser;
(vi) ensure that the movable goods are exported from the Republic within a period of 90 days from the earlier of the time an invoice is issued by the vendor or the time any payment of consideration is received by the vendor and obtain the required documentation within the prescribed time period.
Juta’s IndIrect tax 2016 281