Page 316 - Juta's Indirect Tax

IN 30 (3) VaLue-added tax act: InterPretatIOn nOtes IN 30 (3)
(i) the supply of movable goods –
• for which the time of supply is regulated by section 9(1) or 9(3)(b)(i) or (ii); and
• which are subject to a process of repair, improvement, erection, manufacture, assembly or alteration;
must be exported from the Republic within a period of 90 days calculated from the date of completion of the said process;
(ii) the supply by a vendor of any part of a hunted animal that is subsequently subject to a process of preservation or mounting of that animal as a trophy, must be exported to the recipient within a period of seven months calculated from the earlier of the time an invoice is issued or the time any payment of consideration is received by the vendor;
(iii) the supply by a vendor of tank containers which are to be used for the carriage of bulk liquid, powders or gases on a foreign-going ship must be exported from the Republic within a period of six months calculated from the date of completion of the manufacturing or reconditioning of the tank container.
(d) The Commissioner may extend the period within which movable goods supplied by a vendor to a recipient must be exported from the Republic if such movable goods have not been exported within the prescribed periods in 5.1 and 5.2(a) to (c) due to circumstances beyond that vendor’s control. The vendor must, before the expiry of the 90-day period as set out in 5.1 or before the expiry of the prescribed period as set out in 5.2(a) to (c), submit a written application to the Commissioner either by e-mail to VATRulings@sars.gov.za or by facsimile to 086 540 9390 requesting the extension of the aforementioned 90-day or such other prescribed period. This application must contain the circumstances that would be regarded as being beyond the vendor’s control. In the event that the vendor is unable to submit the application as set out above, the vendor must submit the application within a period of 30 days from the expiry of the period within which the application should have been submitted. This application must include both the circumstances that would be regarded as being beyond the vendor’s control and the reasons substantiating why the application could not have been submitted timeously. For purposes of 5.2(d), circumstances beyond the vendor’s control include –
(i) exceptional commercial delays or dif culties that prevent the vendor from exporting the movable goods within the prescribed time period;
(ii) a natural or human-made disaster;
(iii) a civil disturbance or disruption in services; or
(iv) a serious illness of or accident concerning the vendor or in the case of a juristic person, a serious illness of or
accident concerning the person responsible for arranging the export.
(e) If the provisions of 5.2 are applicable, the vendor must obtain and retain proof to substantiate the application of the
relevant exception.
5.3 Non-compliance
In the event that the vendor is unable to export the movable goods within the prescribed time periods as set out in 5.1 and 5.2 or any approved extended period as set out in 5.2(d), the vendor is required to account for output tax on the supply. The output tax is calculated by applying the tax fraction to the consideration for the supply. The vendor must include the amount of output tax in Block 12 of the VAT return for the tax period in which the said prescribed period ends.
6. Documentation*
6.1 General
The documentary proof acceptable to the Commissioner in order to substantiate the application of the zero rate to a supply of movable goods that are consigned or delivered by the vendor at an address in an export country includes both of cial and commercial documentation.
• Of cial documentation is the export or removal documentation prescribed under the Customs and Excise Act, for
example the Customs Declaration and so forth.
• Commercial documentation is the documentation issued by freight haulers or freight forwarders, businesses and
other organisations that provides proof of the transaction and the transportation of the movable goods, for example, a tax invoice, air waybill, bill of lading, recipient’s order or contract and so forth.
The prescribed documentation must be retained as contemplated in section 55 of the VAT Act for a period of 5 years as contemplated in section 29 of the TA Act. In the event that dif culties are experienced in complying with the required documentary proof, refer to 5 and 7.
6.2 Movable goods physically delivered by the vendor at an address in an export country
A vendor who physically delivers movable goods to a recipient at an address in an export country as contemplated in paragraph (b) of the de nition of ‘consigned or delivered’ (see Preamble), must obtain and retain –
• a copy of the zero-rated tax invoice;
• the recipient’s order or the contract between the recipient and the vendor;
• the customs documentation;
• proof that the movable goods have been received by the recipient in the export country;
• the transport documentation as required for the relevant mode of transport in terms of 6.3); and • proof of payment for the movable goods supplied to the recipient.
* All documentation must be kept or retained as contemplated in section 30 of the Tax Administration Act read with public notice GN 787 published in Government Gazette No. 35733 of 1 October 2012.
308 Juta’s IndIrect tax 2016