Page 313 - Juta's Indirect Tax

IN 30 (3) VaLue-added tax act: InterPretatIOn nOtes IN 30 (3) INTERPRETATION NOTE: NO. 30 (ISSUE 3)
DATE: ACT: SECTIONS:
SUBJECT:
CONTENTS
Preamble
1. Purpose
2. Background
3. The law
4. Application of the law 5. Export time periods
5.1 General rule
5.2 Exceptions
5.3 Non-compliance
6. Documentation 6.1 General
6.2 Movable goods physically delivered by the vendor at an address in an export country
6.3 Movable goods conveyed by the vendor’s cartage contractor to an address in an export country
6.4 Movable goods supplied and exported by any other mode of transport (including continuous transmission
commodities, for example electricity, water, fuel, gas etc) 7. Time period to obtain documentary proof
8. Speci c types of supplies of movable goods
8.1 Second-hand movable goods
8.2 Movable goods exported from the Republic before an invoice is issued or payment is received for the supply 8.3 Movable goods situated outside the Republic
8.3.1 Movable goods temporarily exported from the Republic which are subsequently supplied whilst situated outside the Republic (i.e. changes from a temporary export to a permanent export)
8.3.2 Sale of movable goods situated outside the Republic
8.3.3 Sale of consignment stock in an export country
8.4 Supplies that are subject to a process of improvement, manufacture, assembly or alteration
8.5 Movable goods supplied to a vendor and delivered to that vendor’s customer at and address in an export country
9. Glossary 10. Conclusion
Annexure A – The law Annexure B – Glossary
Preamble
In this Note unless the context indicates otherwise – • ‘consigned or delivered’ means –
(a) the delivery of movable goods by a cartage contractor contracted by the vendor to deliver the movable goods on the
vendor’s behalf to the recipient at an address in an export country, where the cartage contractor –
• is engaged by and contractually liable to the vendor to effect delivery of the movable goods; and • invoices the vendor and the vendor is liable for the full cost relating to such delivery; or
(b) physically delivered by the vendor to the recipient at an address in the export country including the export of the movable goods in the vendor’s baggage or by means of the vendor’s own transport;
• ’cartage contractor’ means a person whose activities include the transportation of goods and includes couriers and freight forwarders;
• ‘customs documentation’ means the export and acquittal documentation prescribed under the Customs and Excise Act, as set out in the Customs and Border Management – External Policy Number SC-EX-01-03 Exports, the Customs and Border Management – External Policy Number SC-TR-01-02 Acquittal of Customs Declarations read with the Customs and Border Management – Annexure Number SC-TR-01-03-A06 Acquittal Document Requirements as updated or amended;*
* References to Customs and Excise Policies and/or Documents include any future update and/or issue of the rele- vant Policy or Document.
Juta’s IndIrect tax 2016 305
5 May 2014
VALUE-ADDED TAX ACT 89 OF 1991
SECTION1(1),PARAGRAPH(a)OFTHEDEFINITIONOF‘EXPORTED’,SECTION11(1)(a)(i) AND SECTION 11 (3)
THE SUPPLY OF MOVABLE GOODS AS CONTEMPLATED IN SECTION 11 (1) (a) (i) READ WITH PARAGRAPH (a) OF THE DEFINITION OF ‘EXPORTED’ AND THE CORRESPONDING DOCUMENTARY PROOF