Page 314 - Juta's Indirect Tax

IN 30 (3) VaLue-added tax act: InterPretatIOn nOtes IN 30 (3) • ‘designated commercial port’ means a place in the Republic which has been designated by the Commissioner as an
exit point from the Republic as listed in the table below:
Designated commercial ports
International Airports
Land Border Posts
Harbours
Railway Stations
• Bloemfontein
• Cape Town
• King Shaka (Durban) • OR Tambo
(Johannesburg)
• Gateway (Polokwane) • Lanseria
• Kruger (Mpumalanga) • Pilanesberg
• Port Elizabeth
• Upington
• Beit Bridge
• Lebombo
• Vioolsdrift
• Nakop/Naroga • Ramatlabama • Skilpadshek
• Groblers Bridge • Kopfontein
• Caledonspoort
• Maseru Bridge
• Van Rooyenshek • Qacha’s Nek
• Jeppes Reef • Mananga
• Mahamba
• Nerston
• Golela • Oshoek
• Cape Town
• Durban
• East London
• Mossel Bay
• Port Elizabeth • Port Ngqura
• Richards Bay • Saldanha
• Germiston
• Golela
• Johannesburg • Maseru Bridge • Ma keng
• Upington
• ‘documentary proof’ means the documentation, including export or removal documentation, prescribed in 6 and 8;
• ‘exceptional commercial delays or dif culties’ means –
– a vendor not being able to secure transport for the export of the movable goods. This paragraph does not apply if the vendor is unable to secure transport due to nancial dif culties experienced by the vendor; or
– an order or contract of which the terms are altered by the recipient; or
– speci c requirements imposed by the export country pertaining to a speci c type of good (for example, registrable
goods);
• ‘export depot’ means the premises of a ‘cartage contractor’;
• ’export documentation’ means the export documentation prescribed under the Customs and Excise Act for countries
other than Botswana, Lesotho, Namibia or Swaziland;
• ’ ash title’ means a supply of movable goods by a vendor to a recipient and that recipient subsequently supplies the
movable goods to another recipient and ownership of the goods vests in the rst-mentioned recipient only for a moment
before the goods are sold to such other recipient;
• ’movable goods’ means ‘goods’ as de ned in section 1(1), excluding immovable goods;
• ’notional input tax’ means input tax deducted on the acquisition of movable goods under a non-taxable supply as
contemplated in paragraph (b) of the de nition of ‘input tax’ in section 1(1);
• ’recipient’ means the person to whom the supply of movable goods under a sale or an instalment credit agreement is
made. Recipient includes a South African vendor and a South African resident.
• ‘Release Instruction’ means the instruction received from the owner of the precious metal by the holder thereof to
export the precious metal;
• ’removal documentation’ means certi cates and/or declaration forms, as prescribed under the Customs and Excise
Act, for the removal of goods from the Republic to Botswana, Lesotho, Namibia and Swaziland;
• ‘section’ means a section of the VAT 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;
• ‘VAT Act’ means the Value-Added Tax Act 89 of 1991;
• ‘zero rate’ means the rate of tax levied under section 7(1)(a) read with section 11(1) substantiated by documentary
proof as contemplated in section 11(3); and
• any word or expression bears the meaning ascribed to it in the VAT Act.
1. Purpose
This Note –
• explains the requirements that need to be adhered to; and
• prescribes the documentary proof, acceptable to the Commissioner, that must be obtained and retained by a vendor; in order to levy VAT at the zero rate on a supply of movable goods under a sale or instalment credit agreement where those goods are consigned or delivered to a recipient at an address in an export country.
Interpretation Note No. 30 (Issue 2) dated 15 March 2006 ‘Documentary Proof Required on Consignment or Delivery of Movable Goods to a Recipient at an Address in an Export Country’ is hereby withdrawn. This Note (Issue 3) is effective from 2 May 2014.
With regard to export transactions –
• for which the time of supply occurred before the effective date of Issue 3, the provisions of Interpretation Note No. 30
(Issue 2) dated 15 March 2006 apply; or • for which the time of supply occurred –
306 Juta’s IndIrect tax 2016