Page 290 - Juta's Indirect Tax

Exports
(c)
VaLue-added tax act: reGuLatIOns and nOtIces Exports
Failure by the vendor to comply with the abovementioned requirements will result in the supply being subject to tax at the standard rate. The vendor must consequently calculate output tax by applying the tax fraction to the consideration (i.e. in terms of section 64(1), the consideration is deemed to include tax).
The vendor must furthermore comply with the requirements set out in paragraphs 15 and 16.
(d)
(4) The role and responsibilities of the agent
(a) (b)
The agent is appointed by the qualifying purchaser for the collection, consolidation and exportation of goods supplied to the qualifying purchaser by one or more suppliers.
The agent must—
(i) conclude an agreement with the qualifying purchaser to be appointed as its South African representative for customs purposes as well as its agent in respect of all supplies made to that qualifying purchaser by vendors in terms of this Part;
(ii) be registered as prescribed in the rules for section 59A of the Customs and Excise Act as well as licensed as a remover of goods in bond;
(iii) take receipt of the goods, issue a ‘goods received note’ to the vendor or the vendor’s cartage contractor and enter it into a warehouse*;
(iv) receive the tax invoice or a certi ed copy of the tax invoice from the vendor;
(v) declare the goods for export on behalf of the qualifying purchaser prior to removal from the warehouse;
(vi) obtain and retain-
(aa) the ‘proceed to port’ notice in respect of the movable goods to be exported;
(bb) the ‘proof of export’; and
(cc) proof of import into the export country or proof of delivery of the movable goods to the qualifying
purchaser or the qualifying purchaser’s agent in the export country;
(vii) provide a statement to the vendor containing the details regarding the proof of export;
(viii) maintain proper inventory control and reconciliation of goods received and exported per vendor;
(ix) provide an inventory reconciliation as listed in subparagraph (viii) to the vendor within 21 days from the
date that the movable goods were exported or required to be exported;
(x) export the movable goods 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.
Failure by the agent to comply with the abovementioned requirements will result in the supply being subject to tax at the standard rate. The vendor (i.e. the relevant supplier(s)) must consequently calculate output tax by applying the tax fraction to the consideration for the supply of the movable goods (i.e. in terms of section 64(1), the consideration is deemed to include tax).
The agent must comply with the requirements set out in paragraphs 15 and 16.
(c)
(a) The cartage contractor, which may be the agent, may be contractually bound either to—
(i) the vendor, the qualifying purchaser or the qualifying purchaser’s agent for the movement of the goods
from the vendor’s premises to the agent’s premises. The cartage contractor must— (aa) deliver the movable goods to the warehouse;
(bb) be licensed as a remover of goods in bond; and
(cc) obtain and retain proof of delivery of the movable goods to the warehouse; or
(ii) the qualifying purchaser or its agent for the exportation of the movable goods from the agent’s premises to the qualifying purchaser in an export country. The cartage contractor must—
(aa) deliver the movable goods to the qualifying purchaser via one of the designated border posts listed
in the de nition of ‘designated commercial port’;
(bb) be licensed as a remover of goods in bond;
(cc) obtain proof of export from the Republic to the export country; and
(dd) obtain proof of import of the goods into the export country or proof of delivery of the movable goods
to the qualifying purchaser or the qualifying purchaser’s agent in the export country.
(6) Role and responsibilities of the qualifying purchaser
(a) The qualifying purchaser orders from or, enters into an agreement with, a vendor for the supply of movable goods to be exported from the Republic to an export country.
(b) The qualifying purchaser must register as an ‘exporter’ as prescribed in rule 59A.03(1) to the Customs and Excise Act and appoint an agent as its South African representative for Customs purposes and enter into an agreement with its agent in the Republic in order to ful l the requirements of this Part.
(c) The qualifying purchaser must make payment to the vendor for the supply of the movable goods.
(7) Time periods in respect of export
The movable goods may be stored in the agent’s warehouse but must be exported from the Republic within 90 days calculated 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.
(8) Payment in respect of the supply
(a) Payment for the supply of goods under this Part must be—
(i) received by the vendor from the qualifying purchaser;
(ii) reported on the Electronic Export Monitoring System and to SARB via the Cross Border Foreign
Exchange Transaction Reporting System (CBFETRS); and
* Note that this warehouse is not a customs and excise warehouse licensed in terms of the Customs and Excise Act.
282 Juta’s IndIrect tax 2016
(d)
(5) The role and responsibilities of the cartage contractor